Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-11-24


question of choosing a test case had
been put in the hands of the attorneys
in Kansas City because of the lack of
Sulflcicnt information here to warrant
an agreement on this point. 1t devel-
opeu mat when the attorney general
asked the railroad representatives last
flSht II they were willing to make the
test OF the Missouri Oklahoma & Gulf
case, they answered that they knew
nothing about 1t and could not say that
II would cover all the ground that
should be covered They were confident.
however that the BIZ! of the Santa F'e
with which they were familiar. is suf-
| iiclently broad to make a t,pical case
presenting all the essential points in
controversy. on the other hand tho
attorney general had not seen the Santa
Zee bill nd could not say whether if
would meet the views of the depart
mcnt.
Thorn for Railroads
the Joint congressional committee in
vestigating the subject of transporta-
ton began it's work in earnest TODAY
with A. T. Thorn, counsel for the rail
way executives advisory committee.
speaking for two hours and a half on
railroad problems of the day He Will
continue tomorrow
Mr.. Thorn went into many phases of
railroad conditions but dealt on their
need for credit if they arc to extend
and keep transportation facilities up to
the standard the public demands
Mr. Thorn. chosen as the first spokes-
man Tor the roads, when the commit
tee decided to begin its inquiry bv hear
ing their side of the case, blamed the
present system of correct" regulation
divided between the state anu federal
governments for most of the probIerns
troubling the public and the carriers
ana appealed for discussion of noces
Sary changes mot upon any mere tho
Dry OF jealousy as TO the Distribution
ci governmental power. but upon tho
large issue of what public interest ra-
qures."
Rates, Mr.. Thorn declared. arc less -,
portant to public interest than ..carta;,.
", safety and sufiiciency of transnorta-
'lon. Under present conditions in which
the railroad business is largely. co.,
trolled by political instead Of h,,cia.
considerations" he added. railroad cred
10 50 poor ana returns so small that
adequate extensions Of lines into unde
Neioped territory and enlargement of "a
cllities are impossible. He said increased
transportation facilities would tend to ra-
duce the high cost of living by oneni,e,
up new country. thereby causing lncreas-
ed production
MI Ihom pointed out that the present
system OF railroad regulation had its be-
cunning IN the abuses of the past and
was based on the principles of repression
| correction and punishment, rather than
On constructive principle. He contrasted
this with the plan of governmental requ.
lation of banks. THE system, of ,o,,
regulation" he said, was born of tho
spirit of helpfulness and encoura eep,en+
intended to build up and make adequate
ioi 'he american people its system of
national banks"
IN support of his contention that "the
i'rst consideration of the public is 70 OH
tam transportation facilities" and thar
the cost is in reality a secondary rom
sideration,' Mr. Thorn declared that who,
nationwide strike recently threatened
10 tie up the railroads business men
"ouid nave been willing to pay almost
anything to get their goods to market"
ne cited the present car shortage and
'he embargoes last spring caused by in
adequate terminal facilities and added.
ne present systems of regulation ara
entirely adequate to protect the puhIic
against exorbtant rates. but are NOT ,da
quate to insure to the public s,,tricio,,
1aclllties for its present and future re-
quirements"
Less than 1000 miles of new railroads
nave been constructed in the United
states in the past year" he said "ani
less than in any year since 1873 except the
period of the Civil war. and yet the cost
of living is daily advancing. which might
be remedied by securing access to new
areas Of production
AS illustrating the inequality Of
transportation facilities at a time
when new railroad building has near
~ stopped. Mr.. Thorn showed that
while New Jersey has 81 miles of rail-
road per 100 square miles of territory
the average for the United States is
only 1858 miles and in Idaho there
are only 1856 miles per 100 souare
miles Less than 33 per cent. of the
natural resources have railroad facili
ties.
will the undeveloped states be
satisfied to stop railroad construction
under such condition of inequality?"
Mr.. Thorn asked 1T is impossible for
railroads to earn enough to supply the
necessary new facilities from current
revenue. They must be provided from
credit. Investors cannot be coerced
but must be attracted"
Investors Deferred
Among the conditions affecting rail-
road credit which deter investors, Mr..
Continued on Page 3-CoIumn ~