Abstract

Editorial Paragraphs

The article throws light on the annual report of the Interstate Commerce Commission, which recommends repeal of the recapture clause of the Transportation Act, under which half of any earnings in excess of 6 per cent on the value of property are taken by the government and put into a contingency fund to be used for loans to weak roads. During ten years the total amount thus recaptured has been less than $11000000. A further difficulty in the Transportation Act is illustrated by the Commission's decision ordering the Pennsylvania Co., a subsidiary of the Pennsylvania Railroad, to divest itself within six months of its 48 per cent stock ownership of the Wabash Railroad and 30 per cent stock ownership of the Leigh Valley, an aggregate investment of more than $100,000,000.