In this connection should be mentioned also the work of the commission in providing for the publication of rates and schedules of sailings and routes of common carriers by water in foreign commerce and the dissemination of this information to those interested in export trade. The commission may further prescribe the regulations governing the conditions under which these carriers by water are to make reservation of space at the request of a railroad carrier, and it may prescribe the form of a through bill of lading for such joint rail and water traffic. In all of the these activities the aim is to correlate the facilities of the various rail and water carriers under government jurisdiction so as to serve the public most expeditiously and conveniently.

Pooling of Facilities and Equipment. Whenever the commission finds that any railroad carrier under its jurisdiction is unable to transport the traffic offered to it as the interest of the public demands, it may make such arrangements as it deems desirable for the handling, routing, and movement of the traffic over other lines upon such terms between the carriers as they may agree upon, or, in case of disagreement, upon such terms as the commission, after hearing, may find just and reasonable. Furthermore, in the event the commission finds

that shortage of equipment, congestion of traffic, or other emergency requiring immediate action exists in any section of the country it may, with or without complaint, answer, hearing, or report suspend the rules, regulations, and practices of carriers with respect to car service, and (1) Give just and reasonable directions with respect to car service without regard to ownership as between the carriers; (2) require the joint or common use of terminals, including main-line tracks; (3) give directions for preference or priority in transportation, embargoes, or movement of traffic under permits, at such time and for such periods as it may determine; and (4) give such just and reasonable directions with respect to the handling, routing, and movement of traffic of carriers by railroad as in its opinion will best promote the service in the interest of the public and the commerce of the people, and upon such terms as between the carriers as they may agree upon or, in the event of their disagreement, as the commission may, after subsequent hearing, find to be just and reasonable.

The first occasion for the exercise of some of these emergency powers came in 1920. On May 15, 1920, an informal petition was

filed by the principal rail carriers calling upon the commission to exercise its emergency powers with respect to establishment of priority and preference in movement of necessary food, fuel, and other vital commodities; relocation of empty equipment, necessary postponement and delay of loading or movement of other less important commodities; and reduction of existing passenger service as far as necessary. The commission, acting upon this petition and upon information as to conditions already in its possession, entered service orders Nos. 1, 2, and 3 on May 20, 1920, and from time to time, subsequent thereto, other such orders, aimed to meet the emergency. These service orders were cancelled as the emergency conditions which led to their issuance passed.

Division of Joint Rates. Under Paragraph (6) of Section 15 of the act, the commission is empowered to prescribe just, reasonable, and equitable divisions among carriers of joint rates, fares, or charges; applicable to the transportation of passengers and property, whenever, after full hearing, it is of the opinion that the existing divisions are or will be unjust, unreasonable, or unduly preferential or prejudicial as between the participating carriers. In prescribing such divisions, the commission must give due consideration,

among other things, to the efficiency with which the carriers concerned are operated, the amount of revenue required to pay their respective operating expenses, taxes, and a fair return on their railway property held for and used in the service of transportation, and the importance to the public of the transportation services of such carriers and also whether any particular participating carrier is an originating, intermediate, or delivering line, and any other fact or circumstance which would ordinarily, without regard to the mileage haul, entitle one carrier to a greater or less proportion than another carrier of the joint rate, fare or charge.

Pooling of Freights and Division of Earnings. Paragraph (1) of Section 5 of the act renders it unlawful for any common carrier subject to the act to enter into any contract, agreement, or combination with any other common carrier or carriers for the pooling of freights of different and competing railroads or to divide between them the aggregate or net proceeds of the earnings of

such railroads, in whole or in part. The commission is empowered, however, after hearing upon application of any carrier or carriers, to approve and authorize such division of traffic or earnings, if assented to by all the carriers involved, upon such terms and conditions as it finds just and reasonable, whenever it finds that such a division will be in the interests of better services to the public or economy in operation, and will not unduly restrain competition.

Control of Extensions or Abandonments of Line. The commission has authority to issue certificates of public convenience and necessity to carriers after application and hearing to permit them to extend existing lines, to construct new lines, to acquire and operate any line of railroad or its extension, to engage in transportation under the Interstate Commerce Act over and by means of such additional or extended line of railroad, or to abandon all or any portion of a line of railroad or its operation. This places in the hands of the commission power to direct the future development of the nation's railroad system.

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During the year ended October 31, 1921, seventy-nine applications for certificates of public convenience and necessity were filed under the provisions of Paragraphs (18) to (22) of Section the Interstate Commerce Act. Fifty-one certificates have been issued, and ten applications have been withdrawn. Of the total number of applications filed, thirty-nine were for permission to construct new lines of railroads or to extend existing lines, and forty were for permission to abandon lines of road.

Maintenance of General Railroad Contingent Fund. The commission is directed by law to recover from the carriers one-half of the annual net operating income received by any carrier for any year in excess of 6 per cent of the value of the railroad property held for and used by it in the service of transportation and to establish and maintain with the funds thus recovered, a general railroad contingent revolving fund, to be used in furtherance of the public interest in railway transportation either by making loans to carriers to meet expenditures for capital account or to refund maturing securities originally issued for capital account or by purchasing transportation equipment and facilities and leasing the

same to carriers, but Paragraph (18) of Section 15a allows the commission to permit for a period not to exceed ten years "the retention of all or any part of the excess earnings derived from the construction and operation of a new line of railroad for such disposition as the carrier may lawfully make of such earnings." This section of the law thus provides practically for a pooling of certain profits of the railroads, and constitues the government a holding corporation for the carriers, with the commissioners as directors to decide how these funds are to be expended by constituent units of the holding corporation.

Forms of questionnaire and return, and rules and regulations for determination and recovery of excess net income under this section of the law are being prepared.

Maintenance of Just and Reasonable Rates, Facilities, Classifications, Practices, etc. The Interstate Commerce Act prescribes certain standards for the carriers under national jurisdiction and lays down certain prohibitions in the fixing of rates, in providing facilities for transportation of persons and property, in the transmission of intelligence, in classification of property and messages, etc. The commission is designated the administrative agent for the enforcement of the provisions of the law in these matters. In the process of enforcement, the commission performs quasi-legislative activities in preparing rules and regulations having the force of law to govern the operations of the carriers in conformity with the requirements of the act, and it also has quasijudicial activities in hearing and deciding issues arising under the law itself and such rules and regulations as the commission has established in attempting the enforcement of the law.

Securing Compliance with Standards Prescribed for Carriers. Almost invariably the adjectives used in the law, defining such standards, are the words "just," "reasonable," "equitable," or

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To this end the commission is authorized “from time to time to purchase, contract for the construction, repair and replacement of, and sell, equipment and facilities, and enter into and carry out contracts and other obligations in connection therewith, to the extent that moneys included in the general railroad contingent fund are available therefor, and in so far as necessary to enable it to secure and supply equipment and facilities to carriers whose applications therefor are approved under the provisions of this section, and to maintain and dispose of such equipment and facilities."

some combination of them. The commission is designated the administrative agent for securing compliance by the carriers with these standards of which the following are the most important:

(1) Providing transportation and service.

Every carrier subject to the act is required" to provide and furnish" transportation upon reasonable request therefor, to furnish safe and adequate car service and to "establish, observe and enforce," just and reasonable rules, regulations, and practices with respect to car service; and to make just and reasonable distribution of cars for transportation of coal among the mines served by it. It is made the duty of the carrier, during a period of coal car shortage, "to maintain and supply just and reasonable ratings of such mines and to count each and every car furnished to or used by any such mine or transportation of coal against the mine."

Paragraph 5 of Section 15 stipulates the standards for transportation wholly by railroad of ordinary live stock. in carload lots destined to or received at public stock yards. Such service must include all necessary service of unloading and reloading enroute, delivery at public stock yards of inbound shipments into suitable pens, etc.

Paragraph 9 of Section I provides for construction, maintenance and operation by carriers of switch connections, upon reasonable terms, upon application of any lateral branch line of railroad or of any shipper tendering interstate traffic. (2) Establishing through routes.

The carriers must establish through routes, provide reasonable facilities for operating them, establish just and reasonable rates, fares, and charges to be applied thereto, and make reasonable rules and regulations for such operation, provide for reasonable compensation to those entitled thereto, and establish such just; reasonable, and equitable divisions of joint fares, rates or charges, as between the carriers participating in such through service, as will not unduly prefer or prejudice any of the participating carriers.

(3) Charges for service.

All charges made for any service rendered in transportation of passengers or property or transmission of intelligence by wire or wireless must be just and reasonable.

(4) Classification and practices.

Just and reasonable classifications of property for transportation must be "established, observed, and enforced" by the carriers as well as just and reasonable regulations and practices affecting classifications; rates or tariffs; the issuance, form and substance of tickets, receipts, and bills of lading;