[HN Gopher] 200-foot-long railway to nowhere is a brilliant ship...
       ___________________________________________________________________
        
       200-foot-long railway to nowhere is a brilliant shipping loophole
        
       Author : lastofthemojito
       Score  : 180 points
       Date   : 2022-02-28 15:32 UTC (7 hours ago)
        
 (HTM) web link (www.thedrive.com)
 (TXT) w3m dump (www.thedrive.com)
        
       | worik wrote:
       | In Aotearoa we no longer have a (local) coastal shipping
       | industry.
       | 
       | Look at a map. How did that happen?
       | 
       | Slave labour imported by ruthless business operators on foreign
       | flagged vessels.
       | 
       | Now COVID has hit, we have very little coastal shipping of any
       | sort.
       | 
       | Put the Jones Act in that context
        
       | tastyfreeze wrote:
       | I really love creative workarounds for ridiculous rules. Like
       | many of our laws the Jones Act is trying to force a desirable
       | outcome because the existing laws forced people to adopt the
       | undesirable outcome. In this case US laws make it too costly to
       | operate a US flagged vessel. Instead of removing laws that were
       | making it too costly we just added a new law to try to force
       | operators to the desirable but costly path of being US flagged.
       | 
       | If a law is preventing us from being globally competitive it is a
       | bad law.
        
         | shuntress wrote:
         | There are some pretty obvious drawbacks to this that you seem
         | to be deliberately ignoring.
         | 
         | For example, in cases where this competitive advantage is
         | gained through means that cause what a reasonable person would
         | considered an excess of human suffering and the relevant US
         | laws prevent the actions that gain that competitive advantage
         | in exchange for human suffering, does it make sense to submit
         | that this human suffering is just a fact of life or would it be
         | better to attempt to eliminate that suffering?
        
           | tastyfreeze wrote:
           | I had thought of those cases but didn't mention them as I
           | feel most people would agree that those are "good" laws and
           | accept the consequences. However, there are currently vastly
           | more laws and regulations that do not fit in that category.
           | There is a lot of space between sacrificing decency and
           | removing law/regulation cruft to improve competitiveness.
        
             | notpachet wrote:
             | This comment is much more nuanced than your original black-
             | and-white "If a law is preventing us from being globally
             | competitive it is a bad law." I appreciate the followup.
        
       | pmarreck wrote:
       | Tell me what your incentives are, and I'll tell you how you'll
       | behave
        
       | tinotopia wrote:
       | It used to seem to me that there was a strong libertarian
       | tendency among computer people, at least relative to the rest of
       | society.
       | 
       | I always attributed this to the fact that anyone who has ever
       | tried to tell a computer what to do has a different kind of
       | understanding of how hard it is to precisely define intentions,
       | even when the compiler doesn't have a personal financial or other
       | incentive to deliberately misconstrue your code so as to create a
       | bug.
       | 
       | It doesn't matter how beneficial is the intention of your law,
       | it'll really only work if it's generally aligned with the local
       | cultural values -- in which case people will Do What You Mean.
       | 
       | Politicians either don't understand this, or pretend not to; you
       | regularly see them passing laws to outlaw things that are already
       | illegal.
        
         | erichocean wrote:
         | > _[laws] only work if...generally aligned with the local
         | cultural values_
         | 
         | The business in question is owned by a Norwegian. Perhaps
         | American businesses should only be owned and operated
         | by...Americans?
        
         | landemva wrote:
         | ' It used to seem to me that there was a strong libertarian
         | tendency among computer people ... '
         | 
         | And it seemed to be prevalent on HN until about March 2020 when
         | over-bearing safetyism became a religion.
        
       | [deleted]
        
       | seniorsassycat wrote:
       | Feels funny that the original 30 mile trip was above board. The
       | new trip is clearly exploiting a loophole, but maybe both trips
       | should be forbidden.
       | 
       | Why is there an exemption for trips by rail?
        
         | beeboop wrote:
         | From a link in the article:
         | 
         | Objections were raised at the time about the potential
         | disruption of pre-existing patterns of travel of both
         | passengers and merchandise in part over Canadian rail lines.
         | 
         | To address those objections, a proviso was added to the
         | restated coastwise law - then the "first proviso" - which
         | stated that the coastwise restriction did not apply to
         | transportation "over through routes heretofore or hereafter
         | recognized by the Interstate Commerce Commission for which
         | routes rate tariffs have been or shall hereafter be filed with
         | said commission when such routes are in part over Canadian rail
         | lines . . ." - and "excluding Alaska."
         | 
         | In 1935 this proviso was interpreted by the U.S. Supreme Court
         | which wrote that "its evident purpose was to avoid disturbance
         | of established routes, recognized by the Interstate Commerce
         | Commission as in the public interest, between Northwestern and
         | Eastern states through the lake ports."
         | 
         | End quote.
         | 
         | The TLDR seems to be that forcing it for rail would have caused
         | too many disturbances to how the rail was operating at the
         | time.
        
       | vernie wrote:
       | When I see an example of tariff engineering I want whoever
       | dreamed up the "cool hack" to be caned.
        
       | krallja wrote:
       | There was a video earlier this month on Half As Interesting about
       | this railway: https://youtu.be/oP1Oq3JLNbc
       | 
       | HAI makes interesting, short, sarcastic videos about obscure
       | topics that HNers will probably enjoy.
        
       | Okkef wrote:
       | Make stupid rules, get stupid compliance.
        
       | crisdux wrote:
       | Repealing or reforming the Jones Act would really help river
       | cities all along the mississippi river system. It would also
       | reduce co2 and traffic congestion. It's amazing to me that no one
       | will take a critical look at this outdated law. It's anti
       | competitive and disproportionately affects interior states.
        
       | triyambakam wrote:
       | The Jones Act has already made Hawaii's economy really difficult,
       | but it might be about to get really worse. Hawaii gets a third or
       | more crude oil from Russia, and with recent sanctions, it's
       | unclear if that will continue. If it doesn't that means Hawaii
       | will need to purchase much more expensive oil from the mainland.
       | 
       | > It is much cheaper for Hawaii to buy oil from Russia than from
       | the U.S., even though the per-barrel cost of oil from Russia is
       | more expensive than from Texas.
       | 
       | > Blame the Jones Act. The 1920 federal maritime law requires all
       | goods shipped between American ports to be on vessels that are
       | U.S. flagged, built and mostly owned and crewed by Americans.
       | 
       | > The result of more than a century of protectionism has been
       | that U.S. ships are more expensive to build and operate, with the
       | additional costs inevitably passed on to consumers. In other
       | words, the added cost of using American ships makes it more
       | expensive for Hawaii to buy oil from Texas than from Russia. [1]
       | 
       | [1] https://www.grassrootinstitute.org/2022/02/jones-act-
       | threate...
        
         | thehappypm wrote:
         | It's not just Hawaii. Massachusetts has to import its natural
         | gas from Trinidad, rather than use much cheaper natural gas
         | from the USA.
        
         | Gwypaas wrote:
         | I don't get this doom and gloom. The population of Hawaii is
         | 1.3 million, a third of the oil is from Russia. That is
         | minuscule on the world scale. Oil is an extremely liquid trade,
         | and Hawaii is already buying non Jones act oil.
         | 
         | Jones Act itself is a problem, and a blessing. It ensures a US
         | maritime industry but has due to lack of competition left it so
         | far behind the world standard that the minute it is removed the
         | entire sector will go bankrupt from international competition.
         | 
         | The Decline of the U.S. Merchant Marine | What's Going on With
         | Shipping?
         | 
         | https://www.youtube.com/watch?v=kJn0bCWx_9g
        
           | echelon wrote:
           | > Jones Act itself is a problem, and a blessing. It ensures a
           | US maritime industry but has due to lack of competition left
           | it so far behind the world standard that the minute it is
           | removed the entire sector will go bankrupt from international
           | competition.
           | 
           | It's too bad we didn't have something like this for
           | manufacturing, too. If we'd kept key component assembly in
           | the US, we could've adapted to supply chain disruptions or
           | unfavorable trading partnerships.
           | 
           | Our nation should be able to sustain itself as a hedge
           | against a multitude of geopolitical risks as well as lay
           | sandbags against the erosion of economic power.
        
             | [deleted]
        
             | [deleted]
        
           | csense wrote:
           | > left it so far behind the world standard
           | 
           | I'm pretty sure "the world standard" for shipping is low pay
           | and workers getting treated like crap.
           | 
           | In any sector of the economy where you don't have
           | protectionism, it quickly becomes a "race to the bottom"
           | where companies move to the least regulated places where
           | there's no minimum wage; various forms of worker abuse are
           | legal; and there's basically no safety / environmental
           | protection.
        
           | changoplatanero wrote:
           | I wonder why we don't have more laws that gradually change
           | things. Like instead of having jones act or no jones act as
           | the only two options what if we could slowly remove the jones
           | act at a rate of 3% per year or whatever? It could begin to
           | improve things for people but also give the domestic industry
           | some time to adapt.
        
             | tablespoon wrote:
             | >> Jones Act itself is a problem, and a blessing. It
             | ensures a US maritime industry but has due to lack of
             | competition left it so far behind the world standard that
             | the minute it is removed the entire sector will go bankrupt
             | from international competition.
             | 
             | > I wonder why we don't have more laws that gradually
             | change things. Like instead of having jones act or no jones
             | act as the only two options what if we could slowly remove
             | the jones act at a rate of 3% per year or whatever? It
             | could begin to improve things for people but also give the
             | domestic industry some time to adapt.
             | 
             | Because maybe that would just draw out the failure, while
             | still failing to achieve some of the main goals of the
             | Jones Act?
             | 
             | Economic "efficiency" is not the only goal that should be
             | pursued, which the events of the last few years should have
             | made clear.
        
           | supernova87a wrote:
           | I agree. On a related topic, I think it's important that we
           | have some low cost software developer labor to make sure that
           | we have the ability to develop things cheaply and compete
           | with other countries.
           | 
           | I propose that we start by reducing your salary by 40% so
           | that we've got some lower cost labor. It's miniscule on the
           | world scale, so you shouldn't complain I suppose? I don't get
           | the doom and gloom.
        
             | mattnewton wrote:
             | Honestly and unironically yes, this sounds great. I don't
             | want to build a career on protectionism. I would start a
             | company tomorrow if quality software development labor was
             | 40% cheaper, it would make so many use cases economical.
        
               | worik wrote:
               | > it would make so many use cases economical.
               | 
               | If exploiting desperate people is the measure an
               | economical use case, no wonder business has a bad
               | reputation
        
               | mattnewton wrote:
               | I am confused, how would a 40% reduction of current
               | software salaries in the US for top talent due to
               | competition mean exploiting people?
               | 
               | Are you against training more doctors too because they
               | would make less money and therefore be more exploited?
               | What about the people who buy their services? Or do I
               | misunderstand?
               | 
               | There certainly are exploitive labor practices but I
               | don't think being for decreasing the costs of a
               | profession due to free competition has to be equated to
               | being for exploiting people of that profession.
               | 
               | I think that many industries and use cases could benefit
               | from software automation, but it is expensive to hire
               | those people. If they are good there is endless demand
               | for their skills in ad tech alone, where they can afford
               | to pay them a salary and benefits valued over 20-30% of
               | the gross profit that entire company brings in a year.
        
             | Gwypaas wrote:
             | Is not that the thing? Working in software I am already
             | competing with the world. My job could get out-sourced
             | tomorrow, but apparently that does not happen.
             | 
             | See the difference? Value vs. cost. Very different.
        
         | asdff wrote:
         | I'm surprised an oil company hasn't tried to set up a free
         | trade zone within hawaii yet.
        
         | retrac wrote:
         | Valid criticism. But how would the USA maintain a merchant
         | fleet in the face of much lower operation costs for operators
         | under a different flag? Without the Jones Act, one might expect
         | near-complete dependence on foreign-flagged ships for US
         | shipping. That's a major vulnerability for a trade-oriented
         | nation. Subsidies perhaps?
        
           | dantheman wrote:
           | Why should the USA maintain a merchant fleet? We already rely
           | on foreign owned and operated ships for the majority of our
           | shipping.
        
             | colechristensen wrote:
             | Because it is an essential piece of infrastructure and
             | without it you lose power to others around the world who
             | would use it to control you.
             | 
             | The cost of not having one is hard to put a number on but
             | very likely much higher than the savings of offshoring all
             | of your shipping.
        
             | kevin_thibedeau wrote:
             | Moving strategic assets between ports.
        
           | _3u10 wrote:
           | The fleet is smaller than it would be without the Jones Act.
        
           | wolpoli wrote:
           | It wouldn't be fair for the cost of this national objective
           | to fall onto Hawaii alone.
        
             | supernova87a wrote:
             | Agreed.
             | 
             | And not only Hawaii, many other places too. The costs fell
             | on Puerto Rico when Congress refused to lift the Jones
             | requirements to ease shipping costs even after the
             | hurricane left them desperate for supplies. I guess the
             | national priority fo ensuring a home-based merchant marine
             | fleet outweighed people's need for toilet paper and medical
             | supplies.
        
           | ars wrote:
           | Seems like a simple solution would be to add "Or Canadian" to
           | the Jones Act.
           | 
           | If there was a war I'm sure Canada would help with any marine
           | shipping needed, and it would simplify things for some
           | operators.
        
           | dhc02 wrote:
           | IF the domestic shipping fleet struggled or shrank without
           | the Jones Act, the answer would be subsidies, rather than
           | prohibition.
        
             | colechristensen wrote:
             | And people would be making essentially the same complaints
             | and essentially the same arguments about the subsidies (see
             | agriculture subsidies)
        
               | golemiprague wrote:
        
               | thrashh wrote:
               | Yeah but people complain about all sorts of stuff. We
               | haven't gotten rid of the subsidies yet. Although in this
               | scenario, we could subsidize oil to Hawaii. I don't know
               | how that could be sold but everyone already benefits from
               | subsidies somewhere and everyone already subsidizes
               | something else.
        
           | adolph wrote:
           | > how would the USA maintain a merchant fleet
           | 
           | Why would the USA maintain a merchant fleet if it not
           | economically feasible?
           | 
           | Why are operation costs lower for operators under a different
           | flag?
           | 
           | How does disadvantaging internal transport help anyone
           | involved other than a handful of specialty operators?
           | 
           |  _The Jones Act requires goods shipped between U.S. ports to
           | be transported on ships that are built, owned, and operated
           | by United States citizens or permanent residents._ [0]
           | 
           | 0. https://www.investopedia.com/terms/j/jonesact.asp
        
             | themaninthedark wrote:
             | The Jones Act can be broken into 3 parts:
             | 
             | 1. transported on ships that are built                 We
             | want to maintain domestic shipyard capacity and not have
             | the only shipyards be those that are government
             | contractors. Why? Imagine if we are ever in a situation
             | where we need Liberty Ships again.
             | 
             | 2. transported on ships that are owned,                 We
             | want to both protect domestic owners as well as be able to
             | hold them accountable if they screw up. You sometimes hear
             | stories about ships abandoned by their owners and the crew
             | forced to stay on the vessel. Or abandoned cargo such as
             | the fertilizer that caused the Beirut blast. We want to
             | minimize those situations.
             | 
             | 3. transported on ships that are operated
             | We want the people working the ships to be invested in our
             | country and we want to maintain a population with these
             | skills. Why? In the event of a Liberty Ship situation, you
             | need people to crew them. But also accountability, who is
             | more likely to report the captain ordering waste oil to be
             | dumped overboard: A US citizen who knows the rules or a
             | sailor from Indonesia whose passport is being held by the
             | captain?
             | 
             | There is a large amount of intercostal and waterway
             | shipping that takes place in the US, grain down the
             | Mississippi, steel on the Great Lakes. Do we want that to
             | be open to Iranian or North Korean ships?
             | 
             | Lastly, the Jones Act only applies to goods shipped between
             | US ports. So if Hawaii is buying Russian gas from Russia,
             | as long as the ship goes from Russia to Hawaii the Jones
             | Act doesn't apply.
        
               | adolph wrote:
               | I can see how it is important for any nation to maintain
               | strategic capabilities in many domains. Since the US is
               | largely a single-continent nation, maintaining a
               | strategic shipping capacity seems less important than
               | other things, but arguably has a greater than zero
               | significance.
               | 
               | The Jones Act disadvantages non-shipping parts of the
               | economy in order to prop up some otherwise unviable
               | operations. In the case of Hawaii, this is especially
               | terrible since US sources of goods and material might be
               | competitive with Russia or elsewhere except for the
               | transportation. The result "costs Hawaii $1.2 billion
               | annually, including 9,100 fewer jobs and $148 million in
               | unrealized tax revenues." [0]
               | 
               | Ship ownership has nothing to do with port safety and a
               | Lebanese Jones Act equivalent would not have changed
               | anything in Beirut since it was international shipping
               | impounded by Lebanon, offloaded and improperly stored in
               | the port for many years. [1]
               | 
               | 0. https://www.grassrootinstitute.org/jonesact/
               | 
               | 1. https://en.wikipedia.org/wiki/2020_Beirut_explosion
        
             | retrac wrote:
             | > Why would the USA maintain a merchant fleet if it not
             | economically feasible?
             | 
             | Basically the same reason Japan subsidizes grain production
             | or why Sweden doesn't buy its fighter jets from Russia.
             | Sure, it'd be cheaper to import, but it's also a
             | vulnerability.
             | 
             | It would make America dependent on foreign powers for the
             | shipping of goods vital to the economy and even national
             | security. How do you move oil to Hawaii and military
             | hardware to Guam if foreign carriers decide to embargo the
             | USA?
        
             | RegnisGnaw wrote:
             | > Why are operation costs lower for operators under a
             | different flag?
             | 
             | A ship flagged under country X has to obey the laws of
             | country X. So a Liberian flagged ship has to obey the laws
             | of Liberia. The minimum wages in Liberia is much less then
             | the US. Overtime rules more relaxed. Safety standards are
             | more relaxed.
        
           | pg_bot wrote:
           | Modify the Jones act so that the ships don't need to be built
           | in the US, they just need to be owned and flagged by US
           | companies. Labor costs for running the ships are a rounding
           | error when compared to the purchase price of the ship and
           | fuel costs. You just don't need that many people to run these
           | large ships and you can already have ~30% of staff be foreign
           | anyway.
        
         | neon_electro wrote:
         | Do you think the increase in price means renewable energy can
         | get a bigger foothold?
        
           | triyambakam wrote:
           | Given the history of how Hawaii policy gets shaped, probably
           | not. But thinking optimistically, hopefully!
        
           | letitbeirie wrote:
           | Solar is already so prevalent on Oahu that they have grid
           | frequency excursions that would be unimaginable on the
           | mainland.
           | 
           | Once grid-scale energy storage gets cheaper Hawaii will have
           | one of the cleanest energy grids on Earth. Until then they
           | have to complement their solar production with peaker
           | turbines that typically burn diesel.
        
             | triceratops wrote:
             | Why can't Hawaii use geothermal energy?
        
               | letitbeirie wrote:
               | Hawaii (the island) can and does, but most of Hawaii (the
               | state)'s electric demand is on Oahu where they haven't
               | found any geothermal that's viable for making power.
               | 
               | [0] https://www.hawaiianelectric.com/clean-energy-
               | hawaii/our-cle...
        
               | retrac wrote:
               | Hawaii does have a geothermal plant. It got covered in
               | lava during a 2018 eruption and took two years to dig
               | back out. Not sure if that's a freak incident or ill
               | portent for its viability in Hawaii. Pre-eruption it
               | supplied about 10% of the state's electricity.
               | 
               | https://en.m.wikipedia.org/wiki/Puna_Geothermal_Venture
        
               | [deleted]
        
       | exabrial wrote:
       | Make stupid laws, get stupid answers.
        
       | bombcar wrote:
       | It seems the truck gets off at the same point it got on, that may
       | be a critical flaw in their trick as it can be argued the rail
       | line didn't provide "part of the journey".
        
         | duck wrote:
         | Is there a video of them loading that truck onto the train? It
         | seems like two ramps on both ends would make that easier and
         | avoid what you pointed out.
        
           | syspec wrote:
           | Yeah i watched the video curious to see how the truck gets
           | OFF the train, but it cut out.
           | 
           | Does it really just backup? That seems much more treacherous,
           | than having a ramp on the other side.
        
         | nwsm wrote:
         | The law just needs some graph theory
        
         | gruez wrote:
         | So all they need to do to make this legit is to build a dock on
         | the other end?
        
           | londons_explore wrote:
           | When sticking to the letter but not the spirit of the law,
           | things like this matter...
        
       | TheMagicHorsey wrote:
       | Jones Act is a bunch of bullshit. Its right up there with Sugar
       | duties, Car dealership laws, Alcohol distributorship laws, and
       | corn subsidies as bullshit insider manipulation of the market to
       | line their own pockets.
        
       | ape4 wrote:
       | Obviously the law could be changed to specify a minimum distance
       | traveled by rail.
        
         | notpachet wrote:
         | Tea must be served!
        
       | beardog wrote:
       | Reminds me of when Marvel argued in court that their mutant
       | characters are non-human because human dolls were taxed
       | differently https://boingboing.net/2012/02/21/marvel-comics-to-
       | us-govt-m...
        
         | pmarreck wrote:
         | Reminds me of when people routinely (and entirely legally) use
         | tax loopholes to avoid paying tax. The problem is that no one
         | even tries to pay a dime more taxes than is legally necessary.
         | 
         | And yet those people are routinely attacked instead of the laws
         | themselves, which to me seems completely absurd. A person
         | should no sooner pay "the spirit of" the amount of tax they
         | "should" owe, than the IRS would forgive a restaurant some tax
         | during the pandemic since "the spirit of" tax wouldn't sink
         | businesses temporarily set back by pandemics.
        
         | smilespray wrote:
         | I'm going to steal that idea and give myself a few mutations to
         | avoid income tax.
        
         | ragazzina wrote:
         | The same applies to Santa suits: should they be taxed as a
         | dress or as a costume?
         | 
         | https://www.npr.org/sections/money/2017/12/20/571645063/epis...
        
       | jtbayly wrote:
       | This is why programmers think they can treat the law like code.
       | Because people often do and get away with it. Often they don't
       | get away with it, too. But still... programmers aren't the only
       | ones looking at the law this way apparently.
        
       | cmdrriker wrote:
       | Ignoring the primary issue Uncle Sam has with this logistics
       | solution, be reminded why laws and or regulations exist for
       | things... there's always someone (right or wrong) that will
       | circumvent the rules with shall we say... creative solutions.
        
         | hangonhn wrote:
         | This is where judges and spirit of the law come in. Laws hav
         | always been imprecise and one remedy for that are judges and
         | trials. I doubt what the company is doing will hold up in court
         | if they want to argue that they satisfied the provision of the
         | Jones Act.
        
       | geocrasher wrote:
       | "The Bureaucracy is expanding to support the needs of the
       | expanding Bureaucracy." - Leonard Nimoy, Civ IV (Oh and
       | originally some old guy. Edited for accuracy.)
        
         | caymanjim wrote:
         | "The bureaucracy is expanding to meet the needs of the
         | expanding bureaucracy." - Oscar Wilde
         | 
         | Credit where credit is due.
        
           | unfocussed_mike wrote:
           | _If, with the literate, I am / Impelled to try an epigram, /
           | I never seek to take the credit; / We all assume that Oscar
           | said it._
           | 
           | -- Dorothy Parker
        
           | geocrasher wrote:
           | True, but more fun to quote Spock ;-)
        
       | ryandrake wrote:
       | Loopholes in the law are like security flaws in programs.
       | Whenever the letter of the law (code) doesn't exactly match the
       | intent, inevitably some attacker will find it and exploit it,
       | especially if there is monetary incentive as is the case in
       | business. This doesn't mean the law is wrong, just that the
       | people who wrote it were careless and didn't think about all the
       | edge cases. What most democratic governments lack is a way to do
       | a quick security update to zero-day loopholes as they are found.
       | These things shouldn't be fixed with years-long lawsuits arguing
       | the intent of the law, they should be fixed with a patch to the
       | actual wording of the law so the intent is more clear.
        
         | mcguire wrote:
         | Keep in mind that there is an intelligent cut-out in the
         | system: the judiciary. They exist _because_ the law is not a
         | computer program and because loopholes are not like security
         | flaws. In this case, the DoJ (officially) noticed the situation
         | in August 2021, meaning the judiciary has not had time to work
         | its magic. When they do so, they will evaluate a stack of
         | arguments about the meaning and results of the law (in a non-
         | computation sense of  "evaluate" and "stack"); what they will
         | not do is interpret the law like a series of if-then
         | statements.
         | 
         | At that point, legislators can then "patch" the law if they
         | feel it necessary. (Do you realize exactly how bad "a quick
         | security update to zero-day loopholes as they are found" would
         | be?)
         | 
         | (Knowing only the facts in the article, I would be willing to
         | bet that some judge is going to say, "haha, yeah, good try, but
         | no." But then I don't know all of the facts of the case.)
        
           | londons_explore wrote:
           | Typically when a judge says no to a case like this, they have
           | to come up with a definition of something in the law that is
           | not met. For example, they may say "It does not qualify as
           | travel on a railway if the load does not travel from one
           | station to another station. In this case, since the loading
           | and unloading occurred at the same station, this load did not
           | travel by rail, and therefore the Jones Act was violated".
           | 
           | That new decision then becomes part of the law (case law).
        
         | _3u10 wrote:
         | it's not a loophole, the law says they have to ship via rail
         | from a different country so that's exactly what they are doing.
         | if the law specifies a minimum distance they will build a
         | circular track and run the train long enough to meet the
         | minimum distance. If it specifies track length they will just
         | build track that long, if it specifies minimum geographic
         | distance they will find a further port.
         | 
         | The law is stupid, so this is what it incentivizes, the Jones
         | act is like a Soviet Nail factory.
         | 
         | My business gets credits from our vendors if we bring customers
         | from other competitors, if it's a new customer we have a vendor
         | we work with that provides very cheap options so we sign them
         | up with a competitor, before onboarding them with the vendor.
         | If the customer is with one of our existing vendors we switch
         | them to a different one. EVERYONE is happy, all our vendor reps
         | are making their numbers, executives are making their
         | competitive advances, even the cheap company is making bank
         | because none of the customers ever even use the service.
        
           | allturtles wrote:
           | I'm not sure why you say this is not a loophole. What you're
           | describing is exactly what a loophole is. A loophole means
           | exploiting the technicalities of the letter of the law to
           | dodge its intent.
        
             | [deleted]
        
           | dane-pgp wrote:
           | > If it specifies track length they will just build track
           | that long, if it specifies minimum geographic distance they
           | will find a further port.
           | 
           | I wonder what the law would have to say to produce the
           | legislators' intended result. Possibly they could require
           | companies to define, for each journey:
           | 
           | * Point A - the average(?) location of where the fish are
           | caught, and
           | 
           | * Point B - the average(?) location where the fish are sold
           | to the public or stored (for the majority of the time they
           | are stored).
           | 
           | Then there could be some requirement that there be two
           | points, C and D, with the following properties:
           | 
           | * the fish pass through points C and D on their way from
           | point A to point B,
           | 
           | * points C and D are on the main Canadian rail network (such
           | that most rail track in Canada can be reached by a train
           | starting at point C or point D),
           | 
           | * the minimum rail distance between points C and D is some
           | percentage P of the straight line distance between A and B,
           | and
           | 
           | * the fish travel only by rail between points C and D.
           | 
           | The precise value of "P" would have to be chosen by looking
           | at examples of intended paths and thinking of possible
           | unintended paths.
        
         | bombcar wrote:
         | It's even more like that, because age old code (law) gets
         | repurposed and reused and something nobody would even bother
         | trying becomes practical.
         | 
         | And in both cases the correct solution is fixing the law (code)
         | but often that opens a whole new can of worms ...
        
           | fuoqi wrote:
           | Even worse, the precedent-based legal system is quite crazy
           | itself, especially to those who lives in the continental
           | legal system. Instead of patching "code" (law) to new times
           | and sometimes removing parts of it completely, the former
           | uses age-old execution artifacts (court decisions) to
           | determine future execution. Not only it bloats "code" with a
           | truck load of pattern matching branches instead of using a
           | lean algorithm, but it also makes it much harder to
           | consciously evolve the system, which is especially important
           | in the current times.
        
             | jquery wrote:
             | It also leads to greater predictability.
             | 
             | >The reliance on judicial opinion is a strength of common
             | law systems, and is a significant contributor to the robust
             | commercial systems in the United Kingdom and United States.
             | Because there is reasonably precise guidance on almost
             | every issue, parties (especially commercial parties) can
             | predict whether a proposed course of action is likely to be
             | lawful or unlawful, and have some assurance of
             | consistency.[76] As Justice Brandeis famously expressed it,
             | "in most matters it is more important that the applicable
             | rule of law be settled than that it be settled right."[77]
             | This ability to predict gives more freedom to come close to
             | the boundaries of the law.[78] For example, many commercial
             | contracts are more economically efficient, and create
             | greater wealth, because the parties know ahead of time that
             | the proposed arrangement, though perhaps close to the line,
             | is almost certainly legal. Newspapers, taxpayer-funded
             | entities with some religious affiliation, and political
             | parties can obtain fairly clear guidance on the boundaries
             | within which their freedom of expression rights apply.
             | 
             | >In contrast, in jurisdictions with very weak respect for
             | precedent,[79] fine questions of law are redetermined anew
             | each time they arise, making consistency and prediction
             | more difficult, and procedures far more protracted than
             | necessary because parties cannot rely on written statements
             | of law as reliable guides.[76] In jurisdictions that do not
             | have a strong allegiance to a large body of precedent,
             | parties have less a priori guidance (unless the written law
             | is very clear and kept updated) and must often leave a
             | bigger "safety margin" of unexploited opportunities, and
             | final determinations are reached only after far larger
             | expenditures on legal fees by the parties.
             | 
             | https://en.wikipedia.org/wiki/Common_law
        
               | fuoqi wrote:
               | >procedures far more protracted than necessary because
               | parties cannot rely on written statements of law as
               | reliable guides
               | 
               | I would say it's a problem with laws, not the system
               | itself. Also the continental system does not imply that
               | precedents do not have any force. The difference is that
               | when a law changes the system accumulates new precedents
               | for it instead of using outdated ones.
        
             | visarga wrote:
             | I think it's meant as a system to ensure consistency and
             | limit the rate of change.
        
               | whatshisface wrote:
               | Imagine a world where there was one law, "be good to each
               | other," and the rest was judicial precedent. What would
               | be the problems?
               | 
               | 1. There would be no centralized repository of what the
               | laws were.
               | 
               | 2. Even the best interpretation of existing precedent
               | could be wrong or overturned, making any action
               | potentially illegal.
               | 
               | 3. The size of the entire corpus would grow with every
               | case and make knowing what the law was only possible for
               | people with a lot of law clerks to research it. The
               | complexity of definitions could grow without bound.
        
         | shuntress wrote:
         | This is why most good laws are written with the understanding
         | that disputes will be solved by a complicated neural network
         | that draws on distributed resources for consensus.
        
         | renewiltord wrote:
         | Yeah, but the intent isn't something the legislature knows. The
         | outcome _is_ the intent - since there are multiple participants
         | and they are negotiating.
        
         | adolph wrote:
         | > Loopholes in the law are like security flaws in programs.
         | 
         | For a law to have a loophole it must already be misaligned to
         | its user's interests.
        
           | allturtles wrote:
           | Who are the 'users' of a law? A government might pass a law
           | to reduce air pollution from factories. Obviously this is
           | 'misaligned' with the interests of factory owners, who will
           | seek out loopholes to exploit. However it may be very well
           | aligned with the interests of citizens at large.
        
         | TheOtherHobbes wrote:
         | The difference is lawyers are paid to find loopholes. And to
         | persuade judges and juries their creative interpretation is
         | valid.
         | 
         | Software lacks the persuasion element. The CPU either runs the
         | code or it doesn't. You fix edge cases by making all possible
         | states explicit, not by arguing with the CPU that it should do
         | something differently to set a precedent.
        
           | ISL wrote:
           | Bug bounties (or zero-day sales) are an expression of that
           | persuasion.
        
           | jka wrote:
           | A trade-off here is that it seems unlikely for a legal team
           | to be able to humanly attempt tens of thousands of slight
           | variants of a legal argument and still be allowed to
           | participate, whereas with computers and network services,
           | fuzzing tends to scale and continue fairly reliably (partly
           | because it often goes unnoticed).
        
         | nicoburns wrote:
         | > What most democratic governments lack is a way to do a quick
         | security update to zero-day loopholes as they are found
         | 
         | That's not necessarily true. The solution is to give regulatory
         | agencies more leeway to enforce and shutdown these violations.
         | It's only really cultural bias against "big government" (and
         | towards letter-of-the-law rather than spirit-of-the-law style
         | enforcement) that prevents this. If you are consistent enough
         | about doing this, then you massively disincentivise companies
         | from exploiting these loopholes in the first place as they know
         | they're likely to get heavily penalised for it.
        
           | FpUser wrote:
           | This is very slippery slope. It is not my friggin job to
           | figure out the "spirit of the law". I can read letter of law
           | and follow it. If law makers lack mental capacity to "stress
           | test" their creations and incorporate "patches" when bugs are
           | discovered they should find some other job.
           | 
           | Otherwise everyone will be on the hook for some imaginary
           | "not following spirit". Might as well hire shamans
        
             | egypturnash wrote:
             | There is a grey area between the letter and intent of the
             | law but it takes a special sort of wilful misinterpretation
             | to end up with "driving onto a little cart that goes about
             | two hundred feet along a rail, then comes back" as
             | "travelling by rail". Especially when there is apparently a
             | whole pile of paperwork that had to be done to officially
             | register this little cart as A Canadian Rail Line. These
             | people know damn well what the spirit of the law is and put
             | a lot of time and effort into coming up with a way to
             | violate the spirit but not the letter of it.
             | 
             | The only way you can get to that point via a slippery slope
             | is to bring your own barrels of lubricant and spend a while
             | clearing rocks and trees and other obstacles off of your
             | slope. You might even have to put some effort into
             | increasing the grade of that slope.
        
               | FpUser wrote:
               | This case is obvious. So fix the law, it is / should be
               | easy to close the loophole and move along.
        
               | egypturnash wrote:
               | Hopefully the courts will decide that while this may not
               | violate the precise letter of the law, it's _incredibly_
               | obvious that it violates the spirit of it, and judge them
               | guilty. But if they do, this company will probably try to
               | push it back to a higher court, given that the initial
               | fines are 90% of their revenue from a few years ago.
               | 
               | I wonder how much they saved by doing this stupid game
               | instead of using actual rail shipping for about thirty
               | miles, and how much of it ended up in the pockets of
               | their top-level staff and investors vs. the pockets of
               | their employees?
        
             | nicoburns wrote:
             | It's a slippery slope in both directions. In one direction
             | you give power to governmental organisations. In the other
             | you give power to corporations. Neither of those things are
             | good from the point of view of democracy.
             | 
             | IMO the fact that US culture is utterly intolerant of any
             | kind of "spirit of the law" governance is one of the
             | reasons why America can't have nice things. It's regulatory
             | bodies have other problems, but one of the main ones is
             | that they are toothless because they generally aren't given
             | any real power. Where they are (such as the FAA), they're
             | often much more effective.
        
               | FpUser wrote:
               | >"In the other you give power to corporations."
               | 
               | Nope. Once caught bug in law, fix it. But don't punish
               | people / corps for failure to "guess". One more time. Iam
               | not law maker and it is not my job.
               | 
               | >"that US culture is utterly intolerant"
               | 
               | I am in Canada. Not the US.
               | 
               | >"why America can't have nice things"
               | 
               | I do not get it. Sure there is a lot of awful thing in
               | the US. And an awful lot of good things as well. Just as
               | everywhere (assuming developed countries).
        
               | nicoburns wrote:
               | > But don't punish people / corps for failure to "guess".
               | 
               | You don't punish people for failure to guess (you may
               | warn them if necessary). You punish people for flagrantly
               | violating the law. Do you really think the creators of
               | the railroad in this article didn't know that this wasn't
               | what the law intended? It's infeasible to update laws in
               | response to every violation - the process takes too long
               | - so we need a lighter weight process that can keep up.
               | You keep _that_ process in check by updating laws where
               | it oversteps the mark.
        
               | landemva wrote:
               | The lightweight response is to repeal the law.
        
               | shuntress wrote:
               | The system you are working towards already exists: Courts
               | and precedence.
        
               | landemva wrote:
               | ' US culture is utterly intolerant of any kind of "spirit
               | of the law" governance ...' yet USA tolerates government
               | immunity which leads to government bad actors having
               | little fear of being successfully sued.
        
               | nicoburns wrote:
               | US lawsuit culture is a whole other kettle of fish! I
               | agree that government officials shouldn't have special
               | protections that others don't have. On the other hand, I
               | feel like an approach where there was greater collective
               | responsibility such that suing individuals wasn't such a
               | large part of the culture would be a huge benefit. For
               | example, better health coverage such that individuals
               | aren't on the hook for other people's medical bills.
        
           | throwaway0a5e wrote:
           | >The solution is to give regulatory agencies more leeway to
           | enforce and shutdown these violations.
           | 
           | Or just ignore them.
           | 
           | No need to get all jackbooty with broad laws and subjective
           | enforcement powers when the basic law and basic enforcement
           | covers 99.999% of cases.
        
       | tejtm wrote:
       | New Brunswick Southern Railway ... sounds like something I should
       | have heard of
       | 
       | https://en.wikipedia.org/wiki/New_Brunswick_Southern_Railway
       | 
       | ahh... the Irvings, petrochemical and politics they showed up
       | here on HN not that long ago (4 months) in conjunction with the
       | mysterious chronic wasting disease in the same area
       | 
       | https://news.ycombinator.com/item?id=28979532
        
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