Cheyenne record., 1916-12-21
REV POLICY sEEE0-D
IN GOVERNMENT
RAIL WAY CONTROL
HalpiuIness andEacouTageman1
Urged By Alfred ?. Thom.
CREDIT MUST Be IMPROVED
Increaee Of Transportation Faciiitie.
Necessary to Secure Relief Fron
High Cost of Living May Thus 8.
Provided For by tho Railroads..

Provided For by tho 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 p.
Thorn. counsel for the Railway Execu-
witness on behalf Of the railroads be-
fore the Newlands Joint Committee on
Interstate Commerce, which has insti-
tuted a general inquiry into the prob
lens Of railroad regulation.
1T is proposed by the joint resolu-
ton OF Congress- said Mr.. Thom. ito
20 into y comprehensive study of the
whole subject OF transportation. to
make new assessment, after % years
of experiment. Of its history. its pres
rnt conditions and its future needs.
The railroads accept the view tEnt reg
ufatiOn is permanent antl 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
inust be done before amy private inter-
csts can be considered
Certainty, Safety and Suficieney.
Mr.. Thorn commended that tire real In
terest of the public Is fin being assured
of certainty, safety ansI suffIciency Of
transportation faefTitfes rather than In
rates. The first consideration Of the
public * to- obtain transportation fnciii-
ties. What the cost fs, IL in reality q
second consideration. he said
Mr.. Fhonr 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 railrond construct
ed in the Unified States f1lring the past
year. he said. ''rcsS than in any Year
since 1S+S. except the period OF the
Civn War. and vet the cost of living IS
daily advancing owing to shortaSe Of
supplies which might be remedietf by
securing. access to new areas of pro
duction.
Credit Must Be Improved.
This leads to the consideration as to
whether railroad credit is as good MS
the public interest requires. 1t Is inr-
possible for railroads. to earn enotrgh
to supply the necessary new facilities
from current revenue. They lnuSt be
provided from credit. Investors cam
not lre cOercetl. hut must be attryetetl."
Among the conditions affecting rail-
road credit which deter investors he
mentioned the following:
First. Railroad revenues are not
controlled by investors. hut are fixed
and limited by governmental authority
and not by one but by several govern
mental authorities. which do not rt>cOs-
niSe responsibility for assured results
% investors and are uncoordfnntcti
second. Railroads cannot control
and the government cannot and does
not limit the expense account.
Third. Tho present system OF rcgu-
lation Is based on II policy Of regu'atio
and correction and not on Il policy OF
telpfulness and announcement.
Fourth. The outstanding obligations
of the railroads have already exceeded
the financial rule Of safety and involve
disproportiona:e amount Of ab);gu-
tions bearing fixed CHARGES
Fifth. The investor must accent n
subordinate obligation or security with
no assurance of surplus OF earnings
to support It.
sixth. Other competitive lines OF in
vcstmcnt present superior attractions.
seventh. The railroad business Is
largely controlled by political instead
of business considerations.
Look Forward, Not Back.
I'VE may debate about what has
| caused the present conditions" said
Mr.. Thom. hut we cannot debate about
what the people need. The President
| has taken the view that we must look
! forward In this matter and make. n
fresh assessment of circumstances in
order to deal hcipfu,ly and Intelligent
ly with the problem. Abuses are
no more prevalent In the railroad busi-
ness to-day than in any other business
humancly conducted. The great qucs-
tion now is whether the existing sys-
! tcfn 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
portntion facilities. If they do moi. no
argument based on the desirabllity Of
the present dual system Of regulation
will bc accepted by public Judgment
The question Of states rights is not
involved. II the regulation OF transpor.
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.
mot upon any mere theory ur jealousy
as to the distribution of governmental