Nebraska State Constitution Article X-3

Article X-3


Consolidation of stock or property.

No public utility corporation or common carrier shall consolidate its stock, property, franchise, or earnings in whole or in part with any other public utility corporation or common carrier owning a parallel or competing property without permission of the Railway Commission; and in no case shall any consolidation take place except upon public notice of at least sixty days to all stockholders, in such manner as may be provided by law. The Legislature may by law require all public utilities and common carriers to exchange business through physical connection, joint use, connected service, or otherwise.


  • Neb. Const. art. XI, sec. 3 (1875);
  • Amended 1920, Constitutional Convention, 1919-1920, No. 31;
  • Transferred by Constitutional Convention, 1919-1920, art. X, sec. 3.


This Article permits but does not compel exchange of business through physical connections, joint use, connected service, or otherwise and public policy in the field is within the legislative domain. City of Lincoln v. Nebraska P.P. Dist., 191 Neb. 556, 216 N.W.2d 722 (1974).

Under section prior to amendment of 1920, the word "railroad" did not apply to street railway companies, and they were not prohibited from consolidating their lines. State ex rel. Winnett v. Omaha & C. B. St. Ry. Co., 96 Neb. 725, 148 N.W. 946 (1914); State ex rel. Tyrrell v. Lincoln Traction Co., 90 Neb. 535, 134 N.W. 278 (1912).

Prohibition against consolidation extends to leasing. State ex rel. Leese v. Atchison & Nebraska R. R. Co., 24 Neb. 143, 38 N.W. 43 (1888), 8 A.S.R. 164 (1888).