An Act to Establish the North Carolina Corpora

tion Commission.

(As Amended.)

The General Assembly of North Carolina do enact:

SECTION 1. That there shall be elected by this general assem- Election of three commissioners. bly three commissioners, who shall have general supervision of railroads, steamboat navigation and canal companies, express Duties and purand telegraph and telephone companies, building and loan asso- pose of commisciations, banks and sleeping car companies. That the said commissioners elected by this general assembly and their successors

sion.

in office shall be and they are are hereby created and constituted How elected. a court of record, and shall be known as the North Carolina Cor- Corporate name. poration Commission, and as such shall have all the powers and jurisdiction of a court of general jurisdiction as to all subjects embraced in this act and shall have a common seal. The term

of office of said commissioners shall begin immediately after their Term of office. election by this general assembly and their qualification and shall continue until the first day of January, nineteen hundred and

one and until their successors are elected and qualified. At the

general election for state officers in nineteen hundred there shall shall be elected at be elected three commissioners by the qualified electors of this general elections. state at the time and places of voting for members of the legislature, one of whom shall be elected for the term of two years and one for the term of four years and one for the term of six years. After the first election such commissioners shall be elected by the qualified electors of this state at the time and places of voting for members of the legislature for a term of six years and shall be members of and constitute the North Carolina Corporation Commission. In case of vacancy the board of internal improve Vacancies occurments shall appoint to such vacancy and their appointee shall ring, how supplied. hold until the qualification of his successor, who shall be elected

by the qualified electors of this state at the next regular election after the vacancy has taken place and the person then chosen shall hold the office for the unexpired term. The said commissioners in addition to the oath to support the constitution and Commissioners laws of the United States and the constitution and laws of the shall take oath. state of North Carolina shall take, to be administered by one of the judges of the supreme court, the following oath of office, which oath shall be signed by said commissioners and attested

by said judge and recorded in the office of the clerk: "I do sol- Form of oath. emnly swear (or affirın) that I am not the owner of steamboat or of any stock or bond of any railroad, navigation or canal company, express, telegraph or telephone company or of any building and loan association, or the agent or attorney or employee of

Shall not be interested in companies under their super

vision.

Control and super

vision of certain corporations.

any such company or association; that I have no interest in any way in any such company or association, and that I will well and faithfully execute the duties of my office as a member of the North Carolina Corporation Commission to the best of my knowledge and ability, without fear, favor or malice or reward or the hope of reward. So help me, God." Said commissioners shall not jointly or severally or in any way be the holder of any stock or bond or be the agent or attorney or employee of any such company or have any interest in any way in such company and shall so continue during the term of his office, and in case any commissioner shall as distributee or legatee or in any other way have or become entitled to any stock or bonds or interest therein of any such company he shall at once dispose of the same. They shall have such general control and supervision of all railroad, steamboat, canal, express and sleeping car companies or corporations and of all other companies or corporations engaged in the carrying of freight or passengers; of all telegraph and telephone companies, of all public and private banks and all loan and trust companies or corporations, and of all building and loan associations or companies necessary to carry into effect the provisions of the act. They shall investigate the books and papers of all books and papers. such companies, individuals, firms or corporations and they shall visit in person from time to time the place of business of such companies, individuals, firms or corporations to ascertain if all orders, rules and regulations of the North Carolina Corporation Commission have been complied with, and shall have full power and authority to examine all officers, agents and employees of such companies, individuals, firms or corporations, and all other persons under oath or otherwise, and to compel the production of papers and the attendance of witnesses to obtain the information necessary for carrying into effect and otherwise enforcing the provisions of this act.

Shall investigate

Empowered to examine officers, agents, etc.

Powers of commission.

To make rates.

Proviso.

Shall consider certain facts.

SEC. 2. That said commission is hereby empowered and directed (1) To make reasonable and just rates of freight, passenger and express tariffs for railroads, steamboats, canal and express companies or corporations, and all other transportation companies or corporations engaged in the carriage of freight, express or passengers: Provided, that in fixing any maximum rate or charge or tariff of rates or charges for any common carrier, person or corporation subject to the provisions of this act the said commission shall take into consideration if proved or may require proof of the fair value of the property of such carrier, person or corporation used for the public in the consideration of such rate or charge or the fair value of the service rendered as in determining the fair value of the property so being used for the convenience of the public. It shall furthermore consider the original cost of the construction thereof and the amount expended in permanent improvements thereon and the present compared with the origi

nal cost of construction of all its property within the state of North Carolina; the probable earning capacity of such property under the particular rates proposed and the sum required to meet the operating expenses of such carrier, person or corporation and all other facts that will enable them to determine what are reasonable and just rates, charges and tariffs.

(2) To make reasonable and just rules as to charges by any Reasonable and just rates for corcompany or corporation engaged in the carriage of freight or porations handexpress for the necessary handling and delivery of the same at ling express or

all stations.

freight.

(3) To make reasonable and just rules and regulations to pre- shall prevent vent discrimination in the transportation of freight or passengers. discrimination. (4) To make reasonable and just rates of charges for the use of Just rates for railroad cars carrying freight or passengers.

freight and passengers.

(5) To make reasonable and just rules and regulations to pre- Prevent rebates, vent the giving, paying or receiving of any rebate or bonus di- etc. rectly or indirectly or the misleading or deceiving the public in any manner as to real rates charged for freight, express or passengers.

(6) To make just and reasonable through rates for the trans- Through rates for portation of freight, express or passengers.

transportation.

(7) To make just and reasonable rules and regulations for the Handling of handling of freight and baggage at stations.

(8) To make just and reasonable rates of charges for the transportation of packages by any express company or corporation. (9) To make just and reasonable rules and regulations as to contracts entered into by any railroad company or corporation to carry over its line or any part thereof the car or cars of any other company or corporation.

freight and baggage. Transportation by

express company.

Company's con

tracting to carry cars of other companies.

(10) To make just and reasonable rates of charges for the trans- Transmission of mission of messages by any telegraph or telephone company or telegrams. corporation doing business in this state.

rentals

(11) To make just and reasonable rates of charges for the rental Telephone of telephones: Provided. this sub-section shall not apply to telephone lines hereafter constructed, nor to telephone instruments connected with the exchanges giving interstate connection until three years after the ratification of this act

May require estabstations.

lishment of

(12) To require, where the public necessity demands and it is demonstrated that the revenue received will be sufficient to just ify it, the establishment of stations by any company or corporation engaged in the transportation of freight and passengers in this state, and to require the erection of depot accommodations commensurate with such business and revenue: Provided, the Proviso commissioners shall not require any company or corporation to establish any station nearer to another station than five miles.

(13) To require a change of any station or the repairs, addition May require to or change of any station house by any railroad or other trans repairs at staportation, company in order to promote the security, convenience

tions, etc

Separate waiting

rooms

Construction of side-tracks.

Proviso.

Powers over banking institutions

Appointment of persons to make

tions and reports

and accommodation of the public and to require the raising or lowering of the track at any crossing when deemed necessary.

(14) To require the establishment of separate waiting-rooms at all stations for the white and colored races.

(15) To require the construction of side tracks by any railroad company to industries already established or to be established: Provided, it is shown that the proportion of such revenue accruing to such side-track is sufficient within five years to pay the expenses of its construction. This shall not be construed to give the commissioners authority to require railroad companies to construct side tracks more than five hundred feet.

(16) To perform al! the duties and exercise all the powers as to banks and banking imposed or conferred upon the state treasurer by chapter one hundred and fifty-five of the public laws of eighteen hundred and ninety-one, as amended by chapter four hundred and seventy-eight, public laws of eighteen hundred and ninety-three, and all reports required to be made by said laws to the state treasurer are hereby directed to be made to the said North Carolina Corporation Commission.

(17) To appoint suitable pesons to make the examinations and certain examina reports required by chapter one hundred and fifty-five, public laws of eighteen hundred and ninety-one, as amended by chapter four hundred and seventy-eight, public laws of eighteen hundred and ninety-three, who shall receive the same compensation for similar services provided for in said law, and the power of the state treasurer to appoint such persons is hereby revoked.

Information to

state treasurer.

Collection of fees, etc.

Jurisdiction as to building and loan associations.

Examination, etc.

of building and

(18) To furnish to the state treasurer upon his application information as to the condition and solvency of any bank or banking institution of this state.

(19) To collect all fees, salaries, charges, commissions and other compensations heretofore collected by or paid to the state treasurer for the performance of the duties and the exercise of the powers imposed or conferred under sub-sections sixteen, seventeen and eighteen of this act and to turn the same into the state treasury for the benefit of the state.

(20) To perform all the duties and exercise all the powers as to building and loan associations imposed or conferred upon the auditor of the state by chapter seven, volume two, of The Code and by chapter four hundred and thirty-four, public laws of eighteen hundred and ninety-three and by chapter four hundred and forty-four, public laws of eighteen hundred and ninety-five, and to make all examinations, issue all certificates and perform all other duties imposed by law upon the auditor of the state relating to building and loan associations.

(21) To appoint suitable persons to make the examinations reloan associations. quired by the laws referred to in the preceding section, who shall receive the same compensation provided for in said laws, and the power of the auditor of the state to make such appointments is hereby revoked.

etc.

(22) To collect all fees, salaries, charges, commissions and other Collection of fees, compensations heretofore collected by the auditor of the state for the performance of the duties imposed or conferred under subsections twenty and twenty-one of this act, and to turn the same into the state treasury for the benefit of the state, and the power of the auditor of the state to collect the same is hereby revoked. (23) To perform all the duties and exercise all the powers im- Perform certain posed or conferred by chapter three hundred and twenty (320) of the public laws of eighteen hundred and ninety-one and the acts amendatory thereto.

duties.

(24) To prescribe rules of practice and proceeding in all mat- To prescribe rules. ters before them and in all examinations necessary to be made

under this act.

turn over books

commission.

SEC. 3. That it shall be the duty of the state treasurer to turn Treasurer shall over to the North Carolina Corporation Commission all books, and papers to papers, statements and other records in his office relating to the duties imposed by this act in regard to banks and banking insti tutions.

to turn over cer

commission.

SEC. 4. That it shall be the duty of the auditor of the state to Auditor authorized turn over to the North Carolina Corporation Commission all tain books, etc., to books, papers, statements and other records in his office relating to the duties imposed by this act in regard to building and loan associations.

books and papers.

SEC. 5. That it shall be the duty of the late board of railroad Retiring board of railroad comcommissioners to turn over to the North Carolina Corporation missioners authorCommission all books, papers, statements and other records in ized to turn over their office relating to the duties imposed by this act in regard to railroads, telegraphs, telephones, steamboats and other transportation companies.

railroads as to

tion of.

SEC 6. That all contracts and agreements between railroad Contracts between companies doing business in this state as to rates of freight and tariffs, examinapassenger tariffs shall be submitted to said commission for inspection and correction, that it may be seen whether or not they are a violation of law or of the provisions of this act or of the rules and regulations of said commission, and all arrangements and agreements whatever as to the division of earnings of any kind by competing railroad companies doing business in this state shall be submitted to said commission for inspection and approval in so far as they affect rules and regulations made by said commission to secure to all persons doing business with said companies just and reasonable rates of freight and passenger tariffs, and said commission may make such rules and regulations as to such contracts and agreements as may then be deemed necessary and proper, and any such agreements not approved by such commission or by virtue of which rates shall be charged exceeding the rates fixed for freight and passengers shall be deemed, held and taken to be violations of this act and shall be illegal and void.

Rules and regulatracts.

tions as to con