348 MANAGEMENT OF RAILROADS IN OPERATION. 



and they will make it a garden in fact, if their ; industry is properly 

 encouraged. 



Transportation, easy, prompt, and cheap, is a condition of the 

 growth of this new empire, which the economist cannot fail to recog 

 nize, and, with legislatures, cannot ignore. Somehow it must be 

 insured, or a nation s growth is retarded. 



The remaining questions are those of kind and degree. 



What should be the form and nature of the control to be exer 

 cised, and to what extent is it proper to carry it ? are in fact the 

 questions which at this moment agitate the public mind in so many 

 countries. They are doubtless in the way of settlement, but they 

 are not settled. Indeed, as we have seen, scarcely any two States 

 or countries fully agree as to either of them. One is trying full 

 ownership by government, the State working the roads. Another 

 prefers government ownership, the roads being leased to private 

 corporations. Another, mixed ownership, the State owning and 

 operating, or leasing, a part of the roads, and allowing companies 

 to operate the rest. Another charters companies, assists them with 

 money, and puts them under ministerial restraint, not only forbid 

 ding but preventing competition. Another creates companies, and 

 leaves them to carry on the business of transportation pretty much 

 as they like, but concentrates the best thought and the largest pow 

 ers of the government deemed judicious, upon the matter of consoli 

 dations, with a view to prevent them. And yet others practice upon 

 the theory of total non-interference. 



SUMMARY OF CONCLUSIONS. 



Having thus completed as full and careful a survey as possible of 

 the whole field of inquiry, the commissioners present the following 

 summary of the more important conclusions they have formed. 



The only form of railway control likely to prove successful under 

 present conditions, is the legislative, supplemented by direct super 

 vision; the legislature laying down general rules of action, but leav 

 ing the application and enforcement of those rules to a commission. 

 A judicious application of this method requires: 



1. A determination, by the commissioners, of the actual cash 

 value of each railroad; such value not to be greater than the actual 

 cost thereof, and the valuation subject to legislative revision. 



2. An annual determination of the gross and net earnings of each 

 company, from the reports of companies, by actual inspection of 

 books and affairs, and by all other practicable methods. 



3. A division of roads into two classes; the first class including 

 all roads paying a reasonable compensation on valuation, and the 

 second class including all other roads. 



4. A maximum of rates of fare and freights for roads ascertained 

 to belong to the first class; such maximum being subject to legisla 

 tive revision. 



5. No restriction of earnings upon roads of the second class, ex 

 cept by way of remedying unjust discriminations. 



6. A prohibition of unjust discriminations and unreasonable or 

 excessive rates on all roads; any person complaining of discrimina 

 tion or extortionate charges having the right to appeal to the board 



