The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1916-11-30

High cos, Of Living May Thus Be
/ Provided For BY the Railroads.
Washington. Nov - A new policy
/ Of government railroad rcsu.ation.
4 based on constructive principles Of
4 hclpfulncss aud encouragement instead
/ " upon principles Of repress au aud
punishment was urged by Alfred L.
\ Thorn. counsel FOR the Railway ENecu-
| lives Advisory Committee. The first
witness on behalf Of the railroads be
4 fore the NeWlands Joint Committee on
1 Interstate Commerce. which has insti
tuted general inquiry into the prob
lens of railroad regulation,
1T is proposed by the joint resolu
| tion OF Congress" said Mr. Thorn, ito
90 into comprehensive study Of the
whole subject Of transportation, to
make new assessment. after ~ years
Of experiment, OF its history its pres
ent conditions and It's future needs
| The railroads accept the view that reg
ulation Is permanent aud enduring
part Of government In America and
that the first duty of the carriers Is TO
the public That duty is to afford
reasonable facilities on reasonable
terms and AT reasonable rates, and this
must be done before any private inter
ests can be considered"
Certainty, Safety and SuHieieney.
,bus Ia l,a
terest Of the public is IN being assured
Of certainty, safety and suticiency of
transportation facilities. rather than In
rates The first consideration of the
public is TO obtain transportation facili-
ties What the cost is, Is in reality a
second consideration, he said.
Mr.. Thorn proposed an increase OF
transportation facilities as method
OF securing relief from the high cost
OF living. There have been less than
1000 miles of new railroad construct
ed In the United States during the past
year" he said. Tess than in any year
since 1913, except the period OF the
Civil War, and yet the cost OF living is
daily advancing owing TO shortage OF
supplies which might be remedied by
securing access to new areas OF pro
duction
Credit Must 30 Improved.
"This leads to the consideration as to |
whether railroad credit is as good az |
the public interest requires. 1t is i'm
possible for railroads to earn enough |
to supply the necessary new facilities
from current revenue. They must be
provided from credit. Investors can
not be coerced, but must be attracted
Among the conditions affecting rail
road credit which deter investors he |
mentioned the following
First, Railroad revenues are not |
controlled by investors, but are fixed
and limited by governmental authority
and not by one but by several govern
mental authorities, which do not recog
nize responsibility for assured results
to investors and are uncoordnated.
Second, Railroads cannot control
and the government cannot and does
not limit the expense account.
Third, The present system OF regu
lation is based on policy Of regulation
and correction and not on a policy OF
helpfulness and encouragement
Fourth, The outstanding obligations
OF the railroads have already exceeded
the financial rule OF safety and involve
a disproportionate amount of obliga-
tons bearing fixed charges.
Fifth, The investor must accept a
subordinate obligation or security with
no assurance OF surplus OF earnings
to support IT,
sixth, Other competitive lines of in
vestment present superior attractions.
Seventh. The railroad business Is
largely controlled by political instead
OF business considerations,
Look Forward, Not Back.
1--WE may debate about what has
caused the present conditions said
Mr. Thorn. but we cannot debate about
what the people need The President
has taken the view that we must look
forward In this matter and make a
fresh assessment OF circumstances in
order 10 deal helpfully and intelligent
" with the problem. Abuses are
no more prevalent In the railroad bust
ness today than in any other business
humanity conducted. The great ques-
ton now is whether the existing sys
TEN OF regulation gives the public re
liable assurance OF sufficient present
and future railroad facilities.
Those who oppose any change must
make their appeal on the ground that
the present systems assure the public
OF the continued adequacy Of trans
portation facilities. IL they do not, no
argument based on the desira bility Of
the present dual system Of regulation
viii be accepted by public judgment
The question Of states rights is not
involved II the regulation OF transpor-
tation facilities privately owned should
Fall government ownership must fol
ow, and then all power OF the states
,yer the railroads would disappear
'I.et % debate this question. then.
40, upon any mere theory or jealousy
IL 10 the distribution OF governmental
4