The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1916-12-22
new POLICY NEEDED
IN COVE NMENT
RAILWAY CONTROL
HslpfuInass and Encouragement
Urged by Alfred P. ThOm.
CREDIT MUST Be IMPROVED
inoreass Of Transpo~tstion Fsoiistass
Necessary 10 Secure Rsissf From
High Cost OF Living May The -
Provided For By ths Railroads.


Necessary 10 Secure Relief Fro~a
High Cost OF Living May The d
Pro~ided For By tie Railroads.
Washington. Nov. "a new poficy
Of government railroad regulation,
based on constructive principles Of
helpfulneas and encouragement instead
OF upon principles OF repression and
punishment was urged by Alfred p.
Thorn, counsel for the Railway Execu-
lives Advisory Committee, the first
witness on behalf OF tho railroads be-
fore the Newlands Joint Committee on
Interstate Commerce. which has instt
tuted general inquiry into the prob
lens OF railroad regulation.
1T IL proposed by the Joint resofu-
tfon OF Congress- said Mr.. Thorn, ito
go into comprehensive study Of the
whole subject of transportation. to
make new assessment, nfter 20 years
OF experiment, Of its history, It's pres
ent conditions and lts future needs.
The railroads accept the view that reg
uiahon Il a permanent and enduring
part Of government In America and
that the first duty Of the carriers Is to
the public. That duty n TO AFFORD
reasonable facilities On reasonable
terms and at reasonable rites, and this
must be done before any private inter
eets can be considered"
Certainty, Safety and suficiency.
Mr.. Thorn contended that the real IN
terest Of the public IL In being assured
Of certainty. safety and sufficiency Of
transportation facilities, rather than IN
rites. The first consideration Of the
public Is to obtain transportation facin-
ties What the cost Is, Is In reality q
second considera ton. be said.
Mr.. Thorn proposed an increase Of
transportation facilities a. a method
OF securing relief from the high cost
N living ''There have been less than
1000 miles Of new railroad construct
ed In the United States during tho past
year he said. less than IN any year
since iS4s. except the period Of the
Civil War. and yet the cost OF living b
daily advancing owing to shortage OF
supplies which might be remedied By
securing access To now areas Of pro
duction.
C~vdh Must 30 Improved.
This leads to the consideration 40 b
whether milroad credit Is as good az
the public interest requires II ia 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 he coerced. but must be attracted"
Among the conditions affecting raf-
road credit which deter investors be
mentioned the following:
First Railroad revenues are not
controlled by investors, but are Axed
and limited BY governmental authority
and not BY ono but by several govern
mental authorities, which do not rccog-
nise responsibility for assured results
to investors and are uncoordinated-
Second, Railroads cannot control
not limit the expense account
Third. The present system Of regu-
lation Is based on a policy of regulation
and correction and not ON a policy OF
helpfulness and announcement.
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 a surplus Of earnings
TO support II
Sixth, Other competitive lines II In
vestment present superior attractions
Seventh. The railroad business IL
largely controlled by political instead
OF business considerations
Look Forward, Not Back.
I'VE may debate about what has
caused the present conditions,r 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
fresh assessment of circumstances In
order to deal helpfully and Intelligent
ly with the problem. Abuses are
no more prevalent In the railroad busi-
ness today than in any other business
humanely conducted. The great ques-
ton now is whether the existing sys-
tenn 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
ID the continued adequacy OF trans
portation facilities. II they do not, no
argument based on the desirability OF
the present dual system Of regulation
will be accepted by public Judgment
The question OF states rights is not
involved. II the regulation OF Transport
tation facilities privately owned should
fail government ownership must fol-
low, and then all power OF the states
over the railroads would disappear.
"Let us debate this question, then.
not upon any mere theory or jealousy
as 10 the distribution OF governmental
power. but upon the large issue Of
what the, public interest requires In