William James Cunningham, 1922 Encyclopædia Britannica — Railways
“ The reserve fund created by a railway from its excess earnings is to be held for interest charges or dividends in lean years, but whenever that fund is more than 5% of its property value, the excess over 5% may be used for any lawful purpose. The problem of the weak railway has been for many years the principal obstacle in the path of a satisfactory solution of the railway question. In the determination of competitive rates, for example, a scale which will give a reasonable return upon the value of a weak railway will give too much to the strong railway. ”
