The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1916-12-02
new POLICY NEEDED
IN COVE R N M Mt
RAILWAY CONTROL
Heipfu|ness Acknowledgment
Urged by Alfred P. Thorn.
CREDIT MUST Be IMPROVED

increase OF transportation Facilities
Necessary to Secure Relief From
High Cost of Living May Thus Be
Provided For by the Railroads.
Washington, Nov. 2S.-A new policy
of government railroad regulation,
based on constructive principles of
helpfulness and encouragement instead
of upon principles of repression and
punishment, was urged by Alfred F.
Thorn, counsel for the Railway Execu-
tives' Advisory Committee the first
witness on behalf of the railroads be-
fore the NewlandS Joint Committee on
Interstate Commerce. which has insti-
tuted general inquiry into the prob
lens of railroad regulation.
ut is proposed by the joint resolu-
ton of Congress-" said Nj, Thorn, ito
60 into comprehensive study of the
whole subject of transportation, to
make new assessment, after 20 years
OF experiment. of its history, its pres
ent conditions and Its future needs.
The railroads accept the view that reg
ulation Is permanent and 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 IN reasonable
terms and at reasonable rates, and this
must be done before any private inter
ests can be considered"
Certainty, Safety and sufficiency.
Mr.. Thorn contendcd that the real in
tereSt of the public is In being assured
of certainty, safety and sufiiciency Of
transportation facilities. rather than in
rates. The first consideration of the
public is to obtain transportation faciIi-
ties. What the cost is, is in reality
second consideration. he said.
Mr. Thorn proposed an increase of
transportation facilities as a method
of securing relief from the high cost of
living There have been less than 1000
miles of new railroad constructed in
the United States during the past year"
he said, less than III any year since
1S4S, except the period of the Civil
War. and vet the cost of living is daily
advancing owing to a shortage of sup
plies which might be remcdied by Sc
curing access to new areas Of produc-
ton.
Credit Must Be improved.
This leads to the consideration as to
whether railroad credit is as good as
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 coerrcd. 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 10y one hut 10y several govern
mental authorities. which do not recog
nize responsibility for assured results
to investors and are uncoordlnated.
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
helpfulnoSS and announcement
Fourth. The outstanding obligations
of the railroads have already exceeded
the financial rule of safety and involve
diSpropOrtiOnatc amount of obliSa-
lions hearing fixed charges.
Fifth, The investor must accept
subordinate Obligation or security with
# Of iT,,T
to support it,
sixth. Other competitive lines of in
vestmcnt 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 max" Il
fresh Assessment of circumstances In
order to deal hrpfu'ly and Utr!ii2."lt T.
~ with the problem. Arises ar
no more prevalent II thc ra ilro't lrSf-
ness today than in any other i."S|cs.
humancly conducted. The great Qr"N-
ton now is whether In" existing Sl~
TEN of regulation gives the public re-
liable assurance of sufficient prcScnl
and future railroad facilities.
"ThoSc wh" oppose any change must
make their appeal on the ground that
the present systems assure the public