The Quarterly Journal of Economics (Volume 31 ) (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated.1917 Excerpt: ... three bases suggested, namely, gross ton miles, engine ton miles, or direct charges, as the divisor for joint maintenance of way expenses. Carriers are required, until further notice, to compute engine ton mile data, and the relative merits of the three bases, or modifications thereof, are to be further considered by the Commission with the aid of the statistics thus made available. The absence of definite instructions to govern in the controversial features connected with the separation of the maintenance of way expenses is unfortunate. The Commission, evidently, is unwilling as yet to commit itself to hard and fast rules. In recent cases (particularly the Western Passenger Fares case to be referred to later) it has taken pains to make clear that where apportionments of expenses have been accepted, the Commission has not thereby given approval to any particular formula for maintenance of way expenses. Apparently, further time is desired to consider conflicting evidence as to the fairness and propriety of the alternative bases, and to observe the effect of the 1915 rules pertaining to the subject. In the meantime, the railroads hesitate to commit themselves to any one formula, fearing that it may not have a place in the next edition of the Commission's rules. The separation of the maintenance expenses, and necessarily of the total operating expenses, is but partially accomplished, and the tendency on the part of the railroads will probably be to report a large part of expenses as "undivided." As has already been stated, it is in connection with the separation of maintenance of way expenses that there exists the greatest diversity and divergence in opinion and practice. Such items as roadway maintenance, tie renewals, and repairs to bridges, trestles, and cu...