Although permission to abandon was granted on a showing that revenues were insufficient to support cost of operation, application was not withdrawn when line was requisitioned prior to effective date of certificate and no other action indicated that applicant believed that the Commission's jurisdiction had ended. Benefits that might accrue from the certificate were accepted, but responsibilities which might later be attached were sought to be avoided. St. Louis-S. F. Ry. Co. Trustees Abandonment, 781 (790). The Commission was and is the only governmental agency to which Congress delegated the duty of determining whether present and future public convenience and necessity permit abandonment of a particular line of railroad. Id. (790, 793). Certificate authorizing abandonment of operation did not excuse carrier temporarily, when prior to effective date line was requisitioned on behalf of the United States Government for war emergency. Certificate relieved carrier of permanent obligation to operate, therefore, the Commission has power to attach conditions for protection of employees as convenience and necessity require. Id. (790, 793). Protection afforded employees should commence the date operation actually was discontinued, when line was requisitioned. Id. (792, 793). The Commission's jurisdiction over abandonment of an independently owned and operated line, located wholly within one State, is limited to interstate and foreign commerce. 258 U. S. 204. However, nothing herein is to be construed as expressing any opinion as to whether purchase by Gulf, M. & O. R. Co. of portions of applicant's track and construction of a connecting track at Holt, Ala., with one of the sections acquired, authorized by Alabama State Commission, are matters within the Interstate Commerce Commission's jurisdiction. Alabama Power Co. Abandonment, 794 (796). Based on findings in 263 I. C. C. 540, applicant, a public utility company engaged principally in manufacture, distribution, and sale of electricity, whose railway operations are incidental to that business, is not an electric, street, suburban, or interurban railway within the exemption of sec. 1 (22), therefore, the Commission has jurisdiction to authorize its abandonment under sec. 1 (18). Id. (796). Certificate issued permitting: Alabama Power Co.-Entire line, as to interstate and foreign commerce, from Tuscaloosa to Holt, Ala., granted conditionally. Certificate withheld, 794. Chicago, B. & Q. R. Co.-Line from Burch to Osceola, Iowa, granted conditionally, 549. Pere Marquette Ry. Co.-Elk Rapids branch, Williamsburg to Elk Rapids, Mich., granted conditionally, 586. ACQUISITION OF LINES AND/OR OPERATION: Operation of railroads should not be limited to carriage of particular commodities. Wheeling & L. E. Ry. Co. Operation, 453 (456). Applications denied: Illinois Central R. Co.-Application to operate line constructed by Chicago, St. L. & N. O. R. Co., in Muhlenberg County, Ky., denied, since the Chicago was denied authority to construct the line. Applicant has been granted authority to operate over the extension to be constructed by the Louisville & N. R. Co., 7. Certificate issued authorizing: Northern Pac. Ry. Co.-Operation of line owned by United States, from Shelton to Bangor Magazine Area and branch line from Bremerton Junction to Bremerton, all in Washington, authorized, 631. CERTIFICATES: In acting under certificate issued, applicant must recognize the reserve power of the Congress under the commerce clause of the Constitution, and the Commission's belief that intercorporate relations between the applicant and the Clinchfield Coal Corp. through Pittston Co. and Alleghany Corp. should cease and ownership of the coal company divorced from ownership or control of the carrier which is to transport the coal. Chesapeake & O. Ry. Co. Construction, 655 (668). CONNECTING TRACKS: Applications granted: Chicago, B. & Q. R. Co.-Connecting tract between its and Chicago G. W. Ry. Co. main lines, at or near Talmage, Iowa, granted conditionally, 549. Pere Marquette Ry. Co.-Construction of cross-over track connecting with Grand Rapids & I. Ry. Co., Pennsylvania R. Co., lessee, Grand Rapids, Mich., granted conditionally, 750. EXTENSION OF LINES: Construction of an extension authorized since it would strengthen the applicant, a weak carrier performing important public service, although principal traffic could be moved over existing lines of other carrier. Hampton & B. R. Co. Construction, 733 (746). Applications denied: Chicago, St. L. & N. O. R. Co.-Construction of extension in Muhlenberg County, Ky., denied. Authority has been granted the Louisville & N. R. Co. to construct an extension to serve the new mines and there are no prospects of any other immediate development of the area, 7. Certificate issued authorizing construction of: Atchison, T. & S. F. Ry. Co.— Extension of Wilmington, part of Los Angeles, to Long Beach, Calif., authorized, 227. Chesapeake & O. R. Co.-Construction of extension of Sandy Valley and Elkhorn subdivision, Letcher County, Ky., and Wise County, Va., authorized conditionally, 655. Hampton & B. R. Co.-Extension of line connecting with Seaboard Air Line Ry. from a point at or near Hampton, and the Southern Ry., at Luray and north of Lena, S. C., authorized conditionally, 733. NEW LINES: When line was constructed by the Navy Department primarily to eliminate hazards of transferring explosives and ammunition from rail to water transportation, convenience and necessity required operation and it was in interest of the Government that such operation be conducted by a carrier subject to the Commission's jurisdiction. Northern Pac. Ry. Co. Operation, 631 (632, 642, 643). Since determination of both present and future public convenience and necessity is required in authorizing construction of line, both prospective and immediately available traffic should be considered. Chesapeake & O Ry. Co. Construction, 655 (662). RESTORATION OF ABANDONED LINES: If convenience and necessity did not permit abandonment of a line, requisitioned on behalf of the United States: Government for war emergency, it would be carrier's duty to restore it to service, when and if, material could be obtained without prejudicing the war effort. St. Louis-S. F. Ry. Co. Trustees Abandonment, 781 (790). COORDINATION. Findings in 247 I. C. C. 285, that proceedings under secs. 1 (18) and 5 (2) were component parts of an inseparable plan of operation and all employees adversely affected were entitled to appropriate protection under sec. 5, are not controlling in considered proceeding when the only coordination is of facilities. Baltimore & O. R. Co. Operation, 535 (544). CORPORATIONS. See CONVENIENCE AND NECESSITY (Certificates); DIRECTORS (Interlocking Directorates); STATES (Statutes). COST OF REPRODUCTION NEW. See CAPITALIZATION (Reorganized Carriers). COURTS. See also FINANCING (Reorganized Carriers); REORGANIZATION OF RAILROADS; TAXES; TRUSTEES. BANKRUPTCY JURISDICTION: Any effect on the amount of cash distributed in debtor's reorganization by changing the effective date would be made only if ordered by the court. Central of Georgia Ry. Co. Reorganization, 627 (629). DAMAGES. See DUTY OF COMMISSION. DEBT SERVICE. See CAPITALIZATION (Reorganized Carriers). DEBTS OF CARRIERS. Payment of debt which would necessitate sale of DEFICITS. See FEDERAL CONTROL. DIRECTORS. IN GENERAL: When plan of reorganization did not contemplate, REORGANIZED CARRIERS: Holders of preferred stock, voting as a class, shall Under approved plan of reorganization, directors elected by voting trustee For protection of interest of holders of preferred and common stock, plan of The management of the reorganized company should be vested in a board of Elimination from approved plan of reorganization of provisions for cumulative DIVIDENDS. See also EARNINGS (Power to Earn); SECURITIES (Assumption Although issue of interest-bearing securities for payment of dividends is not Guaranty or assumption of payment of dividends contemplated under considered reasonable, and equitable as they are in accord with practice generally prevailing DUTY OF COMMISSION. It is the Commission's duty in exercise of admin- The Commission's duty to award specific damages in abandonment proceed- EARNINGS. See also CAPITALIZATION (Reorganized Carriers); CASH; FIXED ESTIMATED: Expectable earnings available for corporate purposes in a normal POWER TO EARN: Abnormal earnings realized under war conditions should not While the Alleghany Corp. must increase its earnings before it can begin liqui- Wartime earnings offer no fair basis for apportionment of new securities and In event of loss of substantial portion of debtor's traffic, almost all of which is SEGREGATION: While earnings resulting from contributed traffic should be Since comparison of operating ratios show that distribution of earnings under The segregation formula of Chattahoochee & G. R., lessor, for 1942 and the Studies of segregation of income are essentially a distribution of revenues on Since segregation formula earnings of earnings mortgage lines from August 1, Distribution of securities and cash based only in part on earnings reflected in EFFECTIVE DATE. See REORGANIZATION OF RAILROADS. EMPLOYEES. See also CONDITIONAL CERTIFICATES AND ORDERS; CONSTRUC- Dismissal allowance shall cease prior to expiration of protective period if em- The conditions for protection of lease or purchase of a home by a carrier's em- Carriers may hold to a minimum any costs assumed because of effect of aban- |