nomy, or by extravagant expenditure
as aforesaid, the rates shall be raised. In all cases where rates are
readjusted, it shall be the endeavor of the Commission to set them at
such a point that the net earnings will equal 6 per cent. on the capital
stock."

The provision requiring two years of excess or deficiency before a
change, would be necessary to avoid the fluctuations which occur in
single seasons. Every piece of economy is so much gain to the
stockholders, and its benefit is received for at least two years. It
must be remembered that in any railway corporation, as at present
conducted, none but the highest of the managing officials have any
personal interest in the profit from operations. It may well be
believed, therefore, that the measure of economy and efficiency effected
would be at least as great as now. As this plan also contemplates
government representation on the Board of Directors, any action by the
higher officials to evade the law would be unlikely to occur.

The receipts of a company operating say 30,000 miles of railway and
carrying its traffic at fixed rates would vary but little from year to
year; and its stock would be so largely held by investors and would vary
so little in price that there would be very little speculation in it. To
bankrupt the company would be an impossibility, since its receipts would
always be regulated to preserve its revenue, although not so strictly
but that the company would still have every incentive to cultivate
traffic by offering good facilities, and to economize at the same time
by the introduction of improved methods.

No doubt it can be shown where every detail of the foregoing plan leaves
loop-holes for abuses to creep in. It will be much the same with any
plan whatever. The questions to be asked are, would abuses, waste and
stealing be any more likely to occur than under any other plan? Could
they be any more prevalent than they are now,--bearable only because we
are calloused to them? Of course, the foregoing is a mere outline of the
general principles of the plan. Details which readily suggest themselves
would, of course, be necessary to carry out the principle successfully.

That some attempt should be made in this connection to solve the
perplexing problem of strikes on railway lines is proven by the
memorable engineers' strike on the Chicago, Burlington, & Quincy system.
Perhaps a provision requiring every employe and officer to hold at least
a certain