road subject to part I of the Interstate Commerce Act are exempt from regulation. In addition, transportation performed in the course of an operation over a regular route, the major portion of which is outside the metropolitan district, except where a major portion of the passenger traffic begins and ends within the metropolitan district, is also exempt. (But see committee amendment No. 8, supra, which, after 3 years, limits the jurisdiction of the compact to transportation solely within the metropolitan districts.)

Paragraph (b) exempts transportation solely within the Commonwealth of Virginia and the persons engaged therein from regulation under the compact.

Paragraph (c) limits the application of the compact to taxicabs and other vehicles having a seating capacity of 8 passengers or less in addition to the driver to (1) the rates or charges for interstate transportation within the metropolitan district, and (2) requirements for minimum insurance coverage.

Section 2 contains definitions of certain terms used in the compact. Section 3 specifies the general duties of carriers subject to the act and requires such carriers to furnish transportation as authorized by its certificate, to establish through routes and joint fares, and equitable divisions thereof, to establish just and reasonable individual fares and to provide safe and adequate service, equipment and facilities.

Section 4 governs the issuance of certificates of public convenience and necessity. Paragraph (a) forbids engaging in transportation without a certificate of public convenience and necessity issued by the Compact Commission. The Commission is required to grant such a certificate to any person who is bona fide engaged in transportation on the effective date of the compact without requiring further proof of the public convenience and necessity, if application for such certificate is made within 90 days after the effective date. Pending the determination of any such application, the continuance of such operation shall be lawful.

Paragraph (b) provides that all other certificates shall be issued after a hearing, if the Commission finds that the applicant is fit, willing, and able to perform the transportation, and to conform to the provisions of the compact and that such transportation is or will be required by the public convenience and necessity. The Commission is empowered to attach reasonable terms and conditions to the issuance of certificates.

Paragraph (c) provides that the application for a certificate shall be made in writing, shall be verified and shall contain such information as the Commission may require by regulations.

Paragraph (d) (1) requires the Commission to specify in any certificate the service to be rendered, the routes, termini or the territory to be served. Under paragraph (d) (2) a certificate may include authority to transport newspapers, baggage of passengers, express or mail, in the same vehicle in which passengers are transported, or in a separate vehicle.

Under paragraph (d)(3), the Commission is authorized to grant temporary authority for emergency service for not more than 180 days in its discretion and without hearings.

Under paragraph (e), the Commission may, upon a finding that the public convenience and necessity so require, require any person to extend any existing service or provide any additional service, but

no expansion of service shall be required unless the carrier is currently earning a reasonable return on its operation as a whole under the compact. Paragraph (e) contains provisions protecting existing carriers against certification of service by other carriers over their routes. Paragraph (f) authorizes the Commission to refer to the Traffic and Highway Board for its advisory recommendations any service proposed under an application for a certificate.

Paragraph (g) provides that certificates shall be effective until suspended or terminated. Any certificate may, upon application of the holder, be amended or revoked, in whole or in part, on the Commission's own initiative or upon complaint, after notice and hearing, for willful failure to comply with any order of the Commission. No certificate shall be revoked unless the holder willfully fails to comply, within a period of not less than 30 days, with an order of the Commission commanding obedience to its regulations, orders, or to the terms and conditions of any certificate issued by the Commission.

Paragraph (h) prohibits the transfer of a certificate without approval by the Commission.

Under paragraph (i) no carrier shall abandon any route specified in a certificate without an order issued by the Commission, after notice and opportunity for hearing, upon a finding that the abandonment is consistent with the public interest. As long as the carrier earns a reasonable return on its entire operation, the operation of a particular route or service at a loss shall not solely be determinative of the question of whether the abandonment of such route or service is consistent with the public interest. The Commission by regulation may authorize such temporary suspensions of routes as may be consistent with the public interest.

Section 5 deals with fares and regulations and practices relating thereto. Paragraph (a) requires that each carrier shall file with the Commission and keep open to public inspection tariffs showing its fares and regulations relating thereto. The Commission is empowered to promulgate regulations governing the filing, posting and publication of such tariffs.

Each carrier engaged in transportation subject to the compact shall, within 90 days from the effective date of the compact, file a tariff in compliance with the requirements of paragraph (a) of this section, showing the fares and regulations relating thereto charged by the carrier immediately prior to the effectiveness of the compact. Such tariff shall become effective upon filing. Pending the filing of such tariff, each carrier may continue to charge the fares it was authorized to charge immediately prior to the effective date of the compact.

Paragraph (c) requires each carrier to keep on file with the Commission the established divisions of all joint fares for transportation subject to the compact in which such carrier participates.

Paragraph (d) provides that no carrier shall charge any fare other than the applicable fare specified in a tariff filed in accordance with the requirements of this section 5.

Paragraph (e) specifies procedure to be followed by any carrier desiring to change any fare specified in a tariff or any regulation or practice specified in a tariff affecting a fare. The procedure requires the filing of a new tariff, showing the change proposed by posting and filing such tariff in such manner as the Commission may prescribe. A new tariff shall not become effective less than 30 days after the date

on which the tariff is filed, unless the Commission by order authorizes its taking effect on an earlier date.

Section 6 prescribes procedures to be observed in proceedings relating to changes in fares and practices relating thereto. Under paragraph (a), a Commission, upon complaint or its own initiative, may suspend any fare, regulation or practice shown in a new tariff filed under section 5 (except a tariff to which sec. 5(b) applies), at any time before the new tariff would otherwise take effect. Suspension shall be accomplished by a notice in writing filed with the tariff and delivered to the carrier. The period of suspension shall terminate 90 days after the date on which the new tariff would otherwise go into effect. In determining whether to suspend, the Commission shall give consideration, among other things, to the financial condition of the carrier, its revenue requirements, and whether the carrier is being operated economically and efficiently.

Section 6(a) (2) empowers the Commission to issue an order prescribing the lawful fare, regulation or practice to be in effect, if, after hearing held upon reasonable notice, the Commission finds that any fare, regulation or practice suspended is unjust, unreasonable, or unduly preferential, or unduly discriminatory either between riders or sections of the metropolitan district. The Commission may extend the suspension period for a period not in excess of 120 days beyond the date of initial suspension. If an order terminating the proceedings is not issued within the suspension period, the fare, regulation or practice involved shall take effect at the termination of such period. Section 6(a)(3) specifies certain factors which the Commission shall take into account in administering its rate powers.

Section 6(a) (4) is a declaration of legislative policy to the effect that carriers should be afforded the opportunity of earning a return which would make the carriers attractive investments to private investors. It is stated that an opportunity to earn a return of at least 61⁄2 percent after taxes, on gross operating revenues shall not be considered unreasonable. This provision is patterned after section 4 of the D.C. Transit System, Inc., franchise.

Section 6(b) authorizes the Commission to initiate proceedings, upon complaint or upon its own initiative, to determine whether any existing individual or joint fare, or regulation or practice relating thereto, is unjust, unreasonable or unduly preferential or unduly discriminatory. If such a finding is made after hearing, the Commission is empowered to issue an order prescribing the lawful fare, regulation, or practice thereafter to be in effect.

Section 7 deals with through routes and joint fares. Under paragraph (a), any carrier may establish through routes and joint fares with any other carrier subject to the compact or to the jurisdiction of the Interstate Commerce Commission, the State Corporation Commission of Virginia, or the Public Service Commission of Maryland.

Under paragraph (b), the Commission may, upon complaint or upon its own initiative, establish through routes and joint fares, after a hearing, when required by the public convenience and necessity. Under paragraph (c), the Commission is empowered, subject to the requirements for hearing, to prescribe just, reasonable and equitable divisions of joint fares between participating carriers, if it finds that such divisions are unjust, unreasonable, inequitable, or unduly pre

ferential or prejudicial as between the participating carriers. The Commission may require the adjustment of divisions as of the date of the institution of the proceedings, or, as of such other date subsequent thereto, as the Commission finds to be just, reasonable and equitable. Under section 8, the Commission is empowered to prescribe reasonable rates for interstate transportation by taxicab within the metropolitan district. No agency of government presently is exercising jurisdiction over transportation by taxicab crossing jurisdictional boundaries within the metropolitan district. The Commission may calculate the fare or charge for such transportation on a mileage basis, zone basis, or any other basis approved by the Commission, but the Commission shall not require the installation of a taximeter in any taxicab, when such a device is not permitted or required by the jurisdictional licensing and otherwise regulating the operation and service of such taxicab.

Section 9 deals with security for the protection of the public. Under paragraph (a), no certificate of public convenience and necessity shall be issued under section 4 or permitted to remain in force, unless the person applying for or holding such certificate complies with regulations promulgated by the Commission with respect to the filing and approval of surety bonds, policies of insurance, qualifications as a self-insurer, or other securities or agreements covering the liability of any carrier for bodily injuries to, or the death of a person, or for loss or damage to property of others, resulting from the operation, maintenance or use of motor vehicles, streetcars or other equipment or facilities utilized in furnishing transportation subject to the compact. Paragraph (b) is a similar provision relating to insurance and security requirements for taxicabs engaging in interstate transportation within the metropolitan district. Under this paragraph, no taxicab shall be permitted to engage in interstate taxicab operations within the metropolitan district unless it complies with the Commission's regulations with respect to insurance and security provisions.

Section 10 covers the reporting requirements of carriers subject to the compact and paragraphs (a) and (b) authorize the Commission to require such carriers to keep such accounts, records and memorandums as the Commission shall by regulation prescribe.

Under paragraph (c), the Commission shall prescribe regulations requiring carriers to maintain appropriate accounting reserves against depreciation and the Commission is authorized to prescribe the classes of property for which depreciation charges may be included under operating expenses, the rate of depreciation to be charged, and to classify the carriers for purposes of depreciation.

Under paragraph (d), the Commission, its members, and authorized employees, are given access to all land, buildings and equipment of all carriers, and to all accounts, records and memorandums kept by such carriers. To the extent found by the Commission to be reasonably necessary for the administration of the compact, provisions of this paragraph (d) shall apply to any person controlling, controlled by, or under common control with, any carrier subject to the compact. Under paragraph (e), any carrier subject to the compact, which has its principal office outside the metropolitan district, shall produce such accounts, records and memorandums for the Commission when so directed by the Commission.

Paragraph (f) provides that section 10 shall not relieve any carrier from any obligations imposed upon it with respect to matters covered

in the section by any State or Federal regulatory commission in connection with transportation service rendered outside the metropolitan district.

Section 11 governs the issuance of securities. Paragraph (a) defines the term "securities" for the purposes of the compact. Paragraph (b) subjects the issuance of all securities by any carrier subject to the compact to the jurisdiction of the Commission. Under paragraph (c), approval of the Commission for the issuance of securities is made upon application, and, after affording reasonable opportunity for hearing to interested parties, the Commission shall give its approval if it finds that the proposed issuance of securities is not contrary to the public interest. Paragraph (d) provides that the order of the Commission approving the issuance of securities shall specify the purposes for which the proceeds from the sale are to be used and the terms and conditions under which such securities shall be issued and sold. This paragraph makes it unlawful for the applicant to apply the proceeds or to issue or dispose of securities in any manner other than as specified by the Commission in its order. Under paragraph (e) any securities issued in violation of section 11 shall be void. Paragraph (f) preserves the power of the Interstate Commerce Commission, the Public Service Commission of Maryland and the State Corporation Commission of Virginia to regulate the issuance of securities by any carrier which is otherwise subject to the jurisdiction of those commissions by virtue of operations in those jurisdictions other than transportation subject to the compact. Paragraph (f) also affirmatively states that the compact shall not relieve any carrier from the obligations imposed by the Securities Act of 1933, as amended, or from the obligation imposed by any blue sky or similar laws of the signatories. Under paragraph (g), the Commission is authorized, to the extent deemed by it to be consistent with the public interest, to exempt from the operation of section 11 any carrier which does not operate exclusively in the metropolitan district and which is subject to the jurisdiction of the Interstate Commerce Commission and the Public Service Commission of Maryland, or the State Corporation Commission of Virginia in the issuance of securities.

Section 12 deals with consolidations, mergers, and acquisition of control. Under paragraph (a), approval of the Commission is required for two or more carriers, any one of which operates in the metropolitan district, to consolidate or merge their properties or franchises, or any part thereof. Paragraph (a) also requires approval of the Commission for any carrier which operates in the metropolitan district or any person controlling, controlled by, or under common control with such a carrier, to purchase, lease, or contract to operate the properties of any carrier which operates in the metropolitan district or to acquire control, through ownership of its stock or otherwise, of any carrier which operates in the metropolitan district. Under paragraph (b), approval of the Commission shall be by application and upon hearing. The Commission shall grant its approval, subject to the imposition of such terms, conditions and modifications as it shall find to be necessary, if the Commission finds the proposed transaction is consistent with the public interest. Paragraph (c) makes it unlawful to continue to maintain or exercise any ownership, management, operation or control in violation of the provisions of paragraph (a) of section 12. Under paragraph (d), the Ĉommission is authorized to grant temporary approval