A

1. What is the character of the rivers that empty into the Atlantic ?

2. Mention and locate the most important harbors along the Atlantic coast.

3. How do they compare with the Pacific harbors in number and size?

4. What was the importance of rivers in settling the West ?

5. What effect did the success of the Erie Canal have on canal-building in the West?

6. When was the Baltimore and Ohio Railroad begun?

7. How did the Civil War affect railroad-building?

8. Which Pacific railroad was first opened to traffic?

9. Why did the national government assist in the building of transcontinental railroads ?

10. Why should our rivers be utilized to a better advantage ?

11. What are the present tendencies in wagon-road building?

12. What is meant by the expression "joint costs"?

13. Mention the various kinds of railroad discriminations.

14. How can a railroad often charge less for a long haul than for a short haul?

15. Why are railroad rates higher on shipments east than on shipments west?

16. On what ground, if any, is it justifiable for railroads to charge what the traffic will bear?

17. What are " rebates" ? "pools" ?

18. How successful have the states been in regulating railroads?

19. When was the original Interstate Commerce Act passed?

20. What changes have been made in this act?

21. Is railroad capital fixed, circulating, specialized, or free?

B

1. A merchant of ladies' ready-to-wear garments decides to put in a stock of shoes.

a. How will he determine his overhead expense in handling shoes ?

b. Can he afford to sell shoes cheaper than an exclusive shoe merchant? Why, or why not?

c. Can he afford to sell shoes at a loss ? Why ?

d. Can he make money by doing so? How?

2. Suppose you invest $2000 in railroad stock. If the Interstate Commerce Commission reduces rates so that the value of your stock falls to $1500, have you a just complaint? Explain with some detail.

3. Make a list of the public service corporations in your community.

a. Which have corporative forms of organization?

b. Which are monopolies ?

c. Which have their rates for service fixed by law ?

d. Which, if any, do not earn fair dividends ?

4. What transportation systems have been beneficial to your community? What has been the special benefit? Make as long a list as you can of the ways by which you have seen goods transported.

5. Illustrate, from your own experience or observation, the effect of the following on railroad building: a. Rivers.

b. Mountains.

c. Seaports.

d. Raw materials.

e. Climatic conditions.

C

1. "Many of the routes of our most important wagon roads were marked out long before Europeans came to our shores." a. What factors determined the location of paths made by wild animals ?

b. Why would the Indians naturally frequent these paths ?

c. What roads did the earliest settlers use?

d. Why should they widen and improve the paths ?

2. A political speaker once declared that railroad rates should be the same for all commodities. If the many rates now in effect were displaced by one flat rate: a. How would prices be affected?

b. Make a list of goods which might not be shipped.

c. How would railroad rates be affected?

d. What would be the effect on railroads in different sections of the country?

e. How would railroad extension be affected?

3. "Improved means of transportation have tended not only to equalize conditions of living in different parts of the world, but also to better the living conditions of the lower classes." Do you agree? Why, or why not?

4. The Interstate Commerce Commission was authorized a few years ago by Congress to undertake a valuation of the railroads of the country.

a. Why was this authorization made?

b. What different kinds of valuation was it possible to make?

c. Which kind would the railroads themselves prefer?

d. What were some of the difficulties encountered by the Commission ?

Supplementary Reading

Bullock, Introduction to the Study of Economics, 3d ed., pages 343-372. Ely, Outlines of Economics, 3d ed., pages 557-576. Fetter, Economics, Vol. II, pages 408-426. Seager, Principles of Economics, pages 424-441. Seligman, Principles of Economics, 5th ed., pages 613-640. Taussig, Principles of Economics, 2d ed., Vol. II, pages 368-381.