Inland Transportation, Principles and Policies by Miller 1933
Inland Transportation, Principles and Policies by Miller 1933
Inland Transportation, Principles and Policies by Miller 1933
Inland Transportation, Principles and Policies by Miller 1933
Inland Transportation, Principles and Policies by Miller 1933
Inland Transportation, Principles and Policies by Miller 1933
Inland Transportation, Principles and Policies by Miller 1933
Inland Transportation, Principles and Policies by Miller 1933
Inland Transportation, Principles and Policies by Miller 1933
Inland Transportation, Principles and Policies by Miller 1933

Inland Transportation, Principles and Policies by Miller 1933

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Inland Transportation, Principles and Policies by Miller 1933
 
INLAND TRANSPORTATION, Principles and Policies
By Sidney L. Miller, Professor of Transportation, University of Iowa
Copyright  1933, 822 pages.
Hard Cover
NOTICE the first two pages (title page, preface) are missing part of the page

CONTENTS
PAGE
PREFACE Vii
PART I
INTRODUCTION
CHAPTER I
NATURE, SCOPE, AND SIGNIFICANCE OF TRANSPORTATION  3The meaning and scope of transportation. Problems of management. The transservice. Types of transportation agencies. Influence of transportation upon the division of labor. Utilization of natural resources. Relationship to population and progress. Political importance of transportation. Relation to production, consumption, and exchange. Distribution modified by efficient trans. Transportation burdened with a public interest. Scope and purpose of this volume.
CHAPTER II
EARLY HISTORY OF TRANSPORTATION 14Obstacles to development of trade and transportation. Periods in the development of transportation. Early man's primitive methods. The wheel. Progress in transby water. The costs of primitive transportation. Social and economic influences of high rates. Historic trade routes in Eurasia. Important European water and land routes.
CHAPTER III
THE EARLY DEVELOPMENT OF TRANSPORTATION IN THE UNITED STATES  25Natural water routes used by the colonists. Important overland routes. Early canal projects in the East. The Great Lakes-Mississippi system. Primitive charof early overland- routes. The development of toll projects. Transportation costs by land and water. Charges upon overland movements. The costs of canal movement. Economic burden of transportation costs. Important routes of trade and travel: water; trails. Need of improved transportation facilities.
PART II
RAILWAY HISTORY OF THE UNITED STATES
CHAPTER IV
BEGINNINGS OF THE AMERICAN RAILWAY NET 45
Development of the track. Evolution of the car. Importance of the locomotiveEarly use of steam. The work of Trevithick. The interest and work of Evans. Furprogress-the Rain Hill trial. American interest in the railway. Initial locomotive operation. The railway as an effective transportation agency. Early engineering problems: the roadway; the problem of power; diversity in track gage; difficulties of train operation. Public opposition to the railway. Inadequate supply of capital. Railway construction at the close of the first period. Forces behind railway building. Summary.
CHAPTER V
ACCEPTANCE OF THE RAILWAY: EXPANSION OF NET  63
Important factors in railway development. Extent of railway expansion. Causes
xi
X11CONTENTS
  • PAGE
of rapid mileage growth. Public aid an important cause. Land grants in aid of railway construction. Development of our land-grant policy. The appearance of large railway systems. Public interest and consolidation. Early proposals to establish transcontinental service. The Union Pacific-Central Pacific project. Other Pacific railways.
CHAPTER VI
ACCEPTANCE OF THE RAILWAY: REGULATION AND GENERAL POLICIES 77
Early Commission activities. Public complaints against rate levels. Other comagainst the railways. The appearance of positive control. Validity of regulatory acts. Recession of movement toward positive control. The appearance of competition. Efforts to control competition. Financial aspects of construction and operation. Progress toward plant efficiency. Consequences of decline in railcharges. Extent of the railway net.
CHAPTER VII
GENESIS OF THE RAILWAY PROBLEM: MILEAGE EXTENSION AND FINANCE 91
Influence of extraneous events. The increase in railway mileage. Mileage growth and public aid. Foreign support of American railway construction. The western movement of population. Extension of transcontinental service. Policy of public aid abandoned. Investment in railways. Overcapitalization and its causes. Changes in financial policy.
CHAPTER VIII
GENESIS OF THE RAILWAY PROBLEM: COMPETITION AND ADVANCE IN REGULATION. . 105 Continuance of intense competition. Influence of competition on rates. Lowered rate levels. Discrimination becomes a major problem. Decline of water traffic. Increase in efficiency of railway operations. Further development of railway cooperation. Southern Railway and Steamship Association. Reappearance of the demand for regulation. The Interstate Commerce Act of 1887. The Interstate Commerce Act and legal procedure. Emasculation of the Act of 1887. Results of federal legislation. Importance of the third period in railway history.
CHAPTER IX
DEVELOPMENT OF THE RAILWAY PROBLEM: MILEAGE GROWTH AND CREDIT 111
Factors influencing development. Mileage increase, 1894-1919. Extensive growth prior to 1908. Mileage development after 1907. The problem of railway credit. The need for railway expansion. Progressive decline in railway growth. Decline reflected by railway capitalization. Reasons for the weakness of railway credit. Decline in net operating income. Uncertainty of governmental policy. A summary. Appearance of large ownership groupings. Methods and gains of federation. Railmechanical progress, 1893-1919.
CHAPTER X
DEVELOPMENT OF THE RAILWAY PROBLEM: THE PERFECTION OF REGULATION. . . . 136 Demand for effective regulation. Upward movement of freight rates. Growing importance of rebates. The Elkins Act. Railway regulation a paramount issue. Important powers given the Interstate Commerce Commission. Prohibitions in the Act. Work of the Commission. Application of the Commodities Clause. Further restrictive legislation. Operation of the Mann-Elkins Act. The valuation of railways. Other legislative enactments affecting the railways. Extent and scope of state regulgtjog, A judgment upon our regulatory policy.

CONTENTSxiii
CHAPTER XIPAGE
DEVELOPMENT OF THE RAILWAY PROBLEM: FEDERAL OPERATION 154
Organization of the Railroad's War Board. Work of the War Board. Federal operaof railways. Reorganization of the railways. The standard contract. Compaid the railways. Work of the Federal Railroad Administration: rates; wages and labor disputes; capital expenditures; miscellaneous undertakings; results of federal operation; classification and rates; the labor policy; financial results and conclusion. Final comments.
CHAPTER XII
THE TRANSPORTATION ACT OF 1920-HISTORY AND PROVISIONS  170
Dual character of the problem. Senate and House take action. Points of agreement and differences, House and Senate bills. Transfer to private operation. Railway interrelations. Control of construction and abandonment. Regulation of security issues. Settlement of labor disputes. Provisions dealing with rates and surplus. State and federal jurisdiction. Miscellaneous rate provisions. Control over routing and service. Changes in Commission organization.
CHAPTER XIII
RECENT RAILWAY HISTORY: ECONOMIC CONDITIONS AND INTERCORPORATE RELATIONS 185 Situation of the railways at termination of federal operation. The postwar boom and depression. Renewed business activity: the peak and the great trough. Price relations in postwar years. A period of siless. Consolidation: the tentative plan; the final plan; modifications of the final plan; summary and conclusion. Acquisition of control: extent of acquisition of control; principles governing. Interdirectorates. Pooling. The holding company.
CHAPTER XIV
RECENT RAILWAY HISTORY: LABOR, SERVICE, RECAPTURE, AND MISCELLANEOUS
RATE POWERS 208The wage increase of 1920. Abrogation of the national agreements. Decreases in wages. The shopmen's strike. Important problems faced by the Labor Board. Abolition of the Board. The Railroad Labor Act of 1926. Operation of the Labor Act. The regulation of service. Construction and abandonment. Regulation of security issues. The Recapture clause. The division of joint rates. Miscellaneous rate powers.
CHAPTER XV
RECENT RAILWAY HISTORY: RATES, RATE OF RETURN, AND EVALUATION OF POLICY. no
Railway rates: increases in rates authorized; intrastate rates; demand for decreased rates; reductions made by Commission and railways; proposed general increases in rates. The Fifteen per Cent Emergency. Rate Increase application. The Hoch-Smith Resolution: provisions, influence, and final adjudication. Financial
results under The Act. A critical situation. Variations in earnings. The financialAoutlook. Valuation. A judgment upon federal regulatory policy; uninformed criticisms of regulatory policy; considered criticisms.
PART III
THE RAILWAY SERVICE
CHAPTER XVI
THE RAILWAY ENTERPRISE e61
Nature and advantages of the corporation. Types of corporations. Regulation

xivCONTENTS
PAGE
of quasi-public corporations. The problem of jurisdiction. The railway charter. Contractual nature of railway charters. Magnitude of the railway corporation. Financial interest of public in railways. The problem of management. The function of the stockholder. The directors and executive committee. The corporate officers. The president. The secretary and treasurer. The legal department. Organization and work of the accounting department. The traffic department. Importance of the operating department. Staff and line officers. Divisional v. departmental organization. Railway purchasing. The real-estate agent. The efficiency of railway organization.
CHAPTER XVII
TERRITORIAL GROUPINGS 281Major territorial groupings. Minor territorial groupings: New England; Trunk Line; Southern; Granger; Southwestern; Transcontinental. Permanence of existing territorial groupings. Dominant position of Class I railways. Relation of mileage to population and area, America and Europe. Vital importance of the railway.
CHAPTER XVIII
THE RAILWAY NET: ROUTES AND TERMINALS e95Major traffic routes: Trunk Line; Piedmont; Northwest-Atlanta; Mississippi Valley; Midwest-Gulf; Granger; Transcontinental. Terminals: importance and problems of locations. The passenger terminal. The freight terminal. Services beyond the rail terminal. Regulatory control of terminal properties and operations. The future.
CHAPTER XIX
FREIGHT SERVICE  316Freight papers: the bill of lading of major public concern; the live-stock contract. The nature of carrier liability. Important legal problems: beginning and terminaof carrier liability; other legal problems. The waybill. Other papers: forms used at destination. Handling freight at terminals. The movement of traffic. Demurrage, reciprocal demurrage, and track storage. Evolution of railway interpractice. Compensation for use of "foreign" cars. Private cars in railway serv: advantages and disadvantages. The future of private-car development.
CHAPTER XX
FREIGHT CHARGES 331Importance of the freight service. Nature and value of freight tonnage. Increase in demand for service. Steps in determining the rate. Development of classification practice. Present classification territories. Classification committees. The confreight classification. Determinants of classification. Commodity rates. Designation of classes. Items listed and number of ratings. Fundamental conin rate making. Types and scope of tariffs. Determination of the total charge. Uniformity of classification. Uniformity of rate relations. Development of freight traffic.
CHAPTER XXI
PASSENGER SERVICE AND CHARGES 348Differences in freight and passenger traffic. Types of trains in service. Character of through service. Classification of tickets. Ticket accounting. Privileges accorded to travelers. Classification of passenger service. Class service in the United States. The erowth of the Pullman service. Advantages of PnlIninn gprv;np nrb P.on

PAGE
statistics. Service and efficiency. Development of additional traffic. Elimination of abuses. The problem of competition. The future of railway passenger traffic.
CHAPTER XXII
THE MINOR SERVICES-MAIL AND EXPRESS 370
The mail service. The railway and the mail service. Development of the railway post office. Closed-pouch service. Volume of railway mail. The terminal post office. The parcel-post service: its establishment; the determination of parcel-post rates; regulations and privileges; volume and financial results. Problem of railway mail pay: present basis of compensation. The express service: a general statement. Brief history of the business. Railway Express Agency, Incorporated: organization and administration. The railway-express contract: the early adjustment; a modified railway-express agreement; disposition of "net income for division"; modifications of the new contract. Demand for regulation. Classification and rates prescribed. Rates made upon a distance basis. Determination of the charge. Express traffic declines. The future.
CHAPTER XXIII
RAILWAY ACCOUNTING AND STATISTICS 396Organization of the accounting department: the expenditures division; freight-revenue records; the passenger-revenues division; work of the car accountant's staff. Freight claims a legal problem. Divisional v. centralized accounting. Regulaof railway accounting demanded. Investment and operating accounts. Income and profit and loss accounts. The general balance sheet. Specimen state. Evaluation of prescribed system. Railway statistics: basis; scope; further development; sources of data.
PART IV
SOME ECONOMIC ASPECTS OF TRANSPORT
CHAPTER XXIV
COMPETITION  413Early belief in efficacy of competition. Competition varied and far-reaching. Traffic competition. Market competition. Industrial competition. Competition assumes two forms. Reasons for intensity of competition: continuous operation; nontransferability of railway capital; railway business one of increasing returns. Immediate and ultimate results of competition.
CHAPTER XXV
COMBINATION 426Appearance of pooling agreements. Division of territory. Movement toward closer unification and consolidation. Factors promoting unification and consolida. Need for unity of action. Progress by voluntary action or compulsion. Past monopolistic character of railways. Monopolistic position of the single carrier. Analysis of the traffic of a railway. Modification of types by extraneous influences. The business problem: competition and monopoly. Tendency toward larger corporate units. Tendency toward concentration of control.
CHAPTER XXVI
RAILWAY UNIFICATION 442Recession of consolidation movement. The formation of systems: Vanderbiltsystem; the Pennsylvania Lines; the Baltimore and Ohio system; the Van Swer-

PAGE
ingen system; the Morgan group; the Hill system; the Union Pacific system; Missouri Pacific Lines; minor ownership groupings. The Canadian systems. Important independent properties. Distribution of railway shares. Tendency in distribution of railway shares. A growing problem.
CHAPTER XXVII
CAPITALIZATION AND CAPITAL VALUE 459
Gross and net capitalization of the American railway net. Increase in the bond ratio. Capitalization per mile of line, railways as a whole and individual lines. Types of railway stocks. Borrowed capital in the railway field. Overlapping of claims. Capitalization and true worth. The problem of valuation: earning capacity as a basis of valuation; nature and validity of historical cost; cost of reproduction. Valuation practice.
CHAPTER XXVIII
SECURITY REGULATION 474
Watered stock: meaning and tests. Reasons for stock-watering. Overcapitaliza: causes and conditions promoting. Morality of stock-watering. Demand for security regulation. Control by the states. Movement toward federal regula. Section 20a of the Transportation Act. The application for authority. The problem of jurisdiction. Items capitalizable and capitalization. Stock divi. Type of security issued. Sale and purchase of securities. Reorganization. Miscellaneous problems. Attitudes toward security regulation. General conclusion.
CHAPTER XXIX
AN ANALYSIS OF RAILWAY FINANCIAL DATA  492
Sources of railway revenue. Revenue variations among railways. Nonoperating income: importance and sources. Operating expenses. Deductions from gross income. Disposition of net income. Movement of operating revenues and expenses. The operating ratio. Evaluation and trend of the operating ratio. Interest on railbonds. Dividends on stock. Market status of railway securities. Needed to effect credit rehabilitation.
pyil/
"/THEORIES OF RATE MAKING
509 Need of sound and definite principles. Theories of rate determination. Ability theories: "value of the service"; "keep everybody in business"; the developprinciple; "value of the commodity"; "what the traffic will bear." Cost of service. Types of cost of service. The ascertainment and application of cost. The strength of cost of service. Conclusions concerning cost as a rate base. Social need. Concluding statement. Position of regulatory bodies. A reasonable theoretbasis for railway rates.
CHAPTER XXXI
RATE-MAKING PRACTICE  5e7Variations in economic conditions among traffic areas. The distance principle in rate making: background and nature of the percentage plan; adjustments in the percentage plan. The basing-point system: analysis of the basing-point system; public policy. The equalization principle: early Western Trunk Line adjustments; other relations established; summary statement. The "blanket" rate: Texas Common Point territory; "blanketing" in Transcontinental rates. The graded-and-maximum plan: nature of the adjustment; modification of the Texas intra-
CHAPTER XXX
PAGE
state structure. Recent major rate revisions: early Commission action; more recent action. Trends in rate making. Passenger rates.
CHAPTER XXXII
COMPARATIVE RAILWAY CHARGES  554
Freight and passenger traffic units. Computation of unit costs. Railway costs and charges: influence of construction differences and efficiency upon costs; effect of wage and price levels; traffic factors; quantity of shipment. Nominal v. real costs: length of haul; type of traffic; character of service; purchasing power of money. Evaluation of rate comparisons. Express charges. American freight rates. American and European charges. American passenger rates; comparison with foreign charges. Conclusion.
PART V
MODERN TRANSPORT
CHAPTER XXXIII
MOTOR TRANSPORTATION: ITS DEVELOPMENT  571
The highway. The Roman roads. French and English highways. Early highways in America. Federal aid. State and local mileage. The vehicle. The modern motor vehicle. Development in the United States. Data on bus and truck. Traffic. The individual passenger car. The bus: advantages of the bus; financial results of bus-line operations. The motor truck: types of trucks in use; truck ownership; nature of truck traffic. Movements by truck of live stock, fruit and vegetables, cotton, cement, coal, automobiles, and other tonnage. Truck traffic: length of haul; volume. Advantages of the truck. Loss of traffic by railways. The motor-vehicle problem.
CHAPTER XXXIV
MOTOR TRANSPORTATION: SOME MAJOR PROBLEMS 602
Highway finance. The old highways. Financing the new highways. Increased costs and the motor vehicle. A summary statement. Fundamentals of tax appor. Motor-vehicle charges: the license; the gasoline tax; other taxes. Apporof the tax burden: a suggested motor-vehicle tax program. Power to regulate: a general statement; regulation under the police power; regulation under the proprietary power; the regulation of common carriage. The jurisdicproblem. Public policy: the motor vehicle and a transportation plan; present state regulation of the common carrier by highway; evils in the existing situation. Demand for effective regulation: a program of state action; a program of federal action. A concluding statement.
CHAPTER XXXVA
INLAND WATERWAYS: REVIVAL AND PROGRAM 637
Early interest in waterways, natural and artificial. Decline of American waterway traffic. Revival of interest in inland waterways: causes of revived interest numerous and varied. Major inland waterway projects: Lakes-to-Gulf waterway; Upper Mississippi River project; Ohio Valley projects; Missouri River develop; Lower Mississippi Valley projects; Intracoastal system; New York State Barge Canals-history of canal systems and present status of properties; St. Lawrence Deep Waterway; other projects.

CHAPTER XXXVIPAGE
INLAND WATERWAYS: ECONOMIC ANALYSIS  661
Federal expenditures on waterways. Types of channels: natural; semi-artificial; artificial. Disadvantages of waterways: inherent and artificial. The problem of individual as against social cost. Judgment upon a proposed waterway. Observaconcerning the Barge Canals: Intracoastal system; Ohio River system; Lower Mississippi; Upper Mississippi; Missouri River; Lakes-to-Gulf waterway; St. Lawrence waterway. Basis of river rates. The problem of public policy.
CHAPTER XXXVII
AIR TRANSPORTATION  693
Man's persistent interest in flying. The lighter-than-air ship: the balloon; the airship. The airplane: the first flight; a decade of development; the immediate postwar period. Physical prerequisites to successful airt ransport: airplane, airway, airport. Air traffic: mail; passenger; goods. Financial aspects of air transport. Regulation of air transport.
CHAPTER XXXVIII
PROGRESSIVE TRANSPORT 717
Railway progress: the locomotive; the car; track and terminal; railway policyProgress of other transport agencies: motor, air, water. Coordinated transport: rail-motor; rail-water; air-rail; water-highway. The pipe line: oil; gasoline; natural gas; summary and outlook.
CHAPTER XXXIX
THE TRANSPORTATION PROBLEM 747
Transportation problem old. Earlier solutions offered. The problem becomes acuteEmergency action taken. Consideration of matters of policy: Joint Committee of Railroads and Highway Users; National Transportation Committee, majority and minority reports. Other general proposals. Commission recommendations, official and individual.
CHAPTER XL
A NATIONAL TRANSPORTATION POLICY  765
Elements of a national transportation policy. Appropriate emergency actionNeeded changes in railway legislation. Public policy relative to newer agencies of transport. The responsibilities of management: waste, increased efficiency; labor; competitive policy; finance; The coordination of agencies of transport. Some basic needs of successful regulation. Government ownership of railways as a solution. The goal of a transportation plan.
APPENDIX 789
INDEX  801



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