CORPORATIONS 961

form a continuous line of transportation, or which could be made to do so
by the construction and maintenance of switch connection, to establish
through routes and joint rates, fares and charges for the transportation of
passengers, freight and property within the State as the commission may by
its orders designate; and in case such through routes and joint rates be not
established by the common carriers named in any such order within the
time specified therein, the commission shall establish just and reasonable
rates, fares and charges to be charged for such through transportation and
declare the portion thereof to which each common carrier affected thereby
shall be entitled and the manner in which the same shall be paid and
secured.

If, in the judgment of the commission, repairs or improvements to or
changes in any tracks, switches, terminals or terminal facilities, stations,
motive power, or any other property, construction apparatus, equipment,
facilities or device used by any common carrier, railroad corporation or
street railroad corporation in or in connection with the transportation of
passengers, freight or property, ought reasonably to be made, or any addi-
tions should reasonably be made thereto, in order to promote the security
or convenience of the public or employees, or in order to secure adequate
service or facilities for the transportation of passengers, freight or prop-
erty, the commission shall, after a hearing, either on its own motion or
after complaint, make and serve an order directing such repairs, improve-
ments, changes or additions to be made within a reasonable time and in a
manner to be specified therein, and every common carrier, or other such
corporation subject to the provisions of this sub-title, is hereby required and
directed to make all repairs, improvements, changes and additions required
of it by any order of the commission served upon it.

The public service commission law does not withdraw from a corporation the control
of its financial policy. Commission has no jurisdiction to direct establishment of de-
preciation reserve and annual addition thereto. Supervision of commission over cor-
porate accounts. Function of court in reviewing finding of commission as to reason-
able rates. Burden of proof. Fair value of bridge held to be the issue, rather than
original cost or cost of acquisition. Method of finding value. Rates, and allowance for
maintenance, held unreasonable. Havre de Grace Bridge Co. v. P. S. C. of Md., 132
Md. 26.

Limitations of power of commission to fix intrastate tariffs and rates. How reason-
ableness of rates is determined. Nature of commutation service. Not all discriminations
are condemned by law. Rates must be reasonable, but not confiscatory; meaning of
latter term. Upon a bill for injunction restraining the execution of an order of com-
mission, the court may not determine what are reasonable rates or establish rates,
but only whether rates fixed by commission are unreasonable or unlawful; rates fixed
by commission prima facie proper. Practical experience held to be only test of reason-
ableness of commutation rates. Portion of order fixing duration of rates modified.
Penna. R. R. Co. v. Public Serv. Com., 126 Md. 65.

If the charter of a railroad authorizes it, without requiring it, to extend its road to
a certain point, it may not be compelled to make such extension if same would not
be remunerative. The manner of construction, equipment and operation of such ex-
tension is to be determined by the directors of the company, and when their judgment
is honestly exercised may not be controlled by commission or courts. Public Serv. Com.
v. U. R. & E. Co., 126 Md. 487.

Rates which permit street railway to earn 6.26% on fair value of its property
are not confiscatory under Federal Constitution.. Meaning of "confiscation" and ''fair
return." Value of company's property. Automobile competition. United States cases
reviewed. Allowance for depreciation. Extraordinary obsolescence. Second fare zone
abolished. Commission's power legislative in character. Burden of proof. Pub. Serv.
Commn, v. United Rwys. Co., 155 Md. 578 (cf. dissenting opinion).

"Public" referred to in last paragraph of this section is whole public rather than
local public. Order of P. S. C. approving relocation of railroad on condition that tracks
as relocated be at point involving heavier grade, invalid. Discretion of P. S. C. must not
be arbitrarily exercised. P. S. C. has only statutory powers and incidental implied
powers. See notes to sec. 209. Pub. Serv. Commn, v. P., B. & W. R. R. Co., 155 Md. 117.

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