Our Railroads To-Morrow

by Edward Hungerford

(d) by the creation of a reserve fund containing one-half of the excess earnings of those railroads whose net earnings exceed the 6 per cent. specified in the rule of rate-making.

(4) That the rates and services of interstate carriers shall continue to be regulated by the Interstate Commerce Commission; that the commission shall be enlarged by the addition of two new members, making eleven in all; and that the commission shall have authority:

(a) to make inquiry continuously concerning the transportation facilities and services of the whole country, and when and how they should be improved; the state of the credit of all common carriers; and the new capital which the public interest may require any carrier to secure;

(b) to permit the consolidation of two or more carriers provided that such consolidation is in harmony with a comprehensive plan (previously adopted by the commission) for consolidating all of the railroads of the country in a limited number of strong competing systems, and also provided that, in the opinion of the commission, the proposed consolidation is in the public interest;

(c) to fix interstate rates that shall be just, reasonable, and adequate;

(d) to determine the valuation of railroad property;

(e) to prescribe a uniform accounting system for all carriers;

(f) to exercise exclusive jurisdiction over capital expenditures and the issuance of securities by carriers;

(g) to prohibit the extension of present lines or the construction or acquisition of new lines by any carrier until it has obtained from the commission a certificate of public necessity and convenience;

(h) to require the construction of docks and rail connections between rail and water carriers;