Evening star., 1916-11-25
TSSTANDARD
SETFOR CARRIERS
A. P. Thorn Tells Congressional
Committee U. S. Should
Regulate Efficiency.
AID TO NATIONAL DEFENSE

Adequate transportation facilities as
a part of a system of national defense
can be had only by an Improvement
In methods of railway regulation in
this country, A. P. Thorn, general
counsel of the railway executives ad-
visory committee. today told the New
lands joint congressional committee
investigating the whole subject of
transportation.
Mr.. Thorn argued that il is the duty
of the federal government to establish
a standard of efficiency in transporta-
ton and commerce from the standpoint
of national defense. He strongly urged
upon the committee the necessity of
concentrating authority over the rail-
roads in the hands of the federal gov
er-nment, on the ground that each state
has a right to be protected by the i'm
partial regulation of interstate carriers
by the government against the differing
views of other states.
The lessons taught by the European
war he said, show that transportation
lies at the very base Of national eff
cheney. He contended that as the duty
of national defense is imposed upon
the national government it is illogical
and inefficient to keep from the ma
tional government the authority to es-
tablish a standard of efficiency in trans
portation.
Must Be Efficient, He Says.
I'VE must be efficient as nation il
we are to deal successfully with our
national emergencies" Mr.. Thorn said,
"and we must appreciate that efficient
transportation is an essential condi-
ton Of national efficiency. If we are
to halt and weaken our transportation
system by state lines, by the perma-
nent imposition of burdens by unwise
regulation, we will make national
efficiency impossible
rs it wise" he asked, "for US to sub
ject a matter of such universal con-
cern and such great national inn
portance to the uncertain policies and
inadequate outlook of the states? The
progress of events and the growth of
the nation emphasize the wisdom and
necessity of reposing the power of
commercial regulation, which SO es-
sentially involves the rational inter-
est and national efficiency in the hands
of the authority which is alone re-
sponsible to all the people for the
preservation of our national liberty"
Mr.. Thorn contended that the regula-
ton of interstate commerce by the fed
eral government would be no violation
of the rights of the states, no invasion
of their prerogativeS, and in no sense
ereignty, but in reality is merely the
specific performance of the contract
which each state bargained TO when
it subscribed to the Constitution.
1t is the covenanted right Of each of
them as well as in. their highest in
terest," he said, that the commerce in
which each is interested and the in
strumentalities on which successful
national defense depends shall be regu-
lated by the fair and impartial author
ity which alone springs from and is
responsible to them all"
State Commissions Useful.
suggestion Of the railroads. he said, to
naugurate a policy of abolition or OBJ
struction of state commissions. On the
contrary, a large field of usefulness
must in any event be presented to them
Nor would there by any contention
he said. that mere implication of a
system of regulation would be a COM
plete remedy for the difficulties of the
present situation, but it would be a step
in the direction of a solution, because
1t would concentrate responsibility at
the same time IL concentrated power. 1t
would make regulation more business
like by removing it from the influence
of local policies and politics.
1T would furnish a Surer basis for
the confidence of the investing public.
Mr. Thorn said, because more reliance
could be put upon the judgment of the
whole nation as affecting a matter of
nation wide consequence than could be
placed in the varying judgment of diff
ferent local authorities but it will be
re
merely simplifying and concentrating
regulation. 1t will be necessary to in
troduce into the system of regulation
by the national government those ele-
ments of constructivenesS and helpful
ness which are essential to the contin-
ued growth and efficiency of the instru-
mentalities of commerce"
Mr.. Thorn then presented the sugges-
tions as to the principles which the
railroads believe should be included in
any just system of regulation The
principal features of the plan are:
Points for Regulation.
1. The entire power and duty of regula-
ton should be in the hands of the ma
tional government except as to matters
so essentially local and incidental that
they cannot be used to interfere with the
efficiency of the service or the just rights
of the carriers.
.. AS one of the means Of accomplish
ing this system Of federal Incorporation
should be adopted into which should be
brought all railroad corporations engaged
in interstate or foreign commerce.
8 Reorganization of the interstate COM
merce commission and the creation of a
new federal railroad commission and re-
gional commissions subordnated to it.
f. Interstate commerce commission
should be given power to prescribe mimi
mum rates.
s. The power of the commission to sus-
pend rates should be confined to sixty
days from the time the tariff is filed, in
stead of ten months. as at present.
g. The federal government should have
the exclusive governmental power to
supervise the issuance of securities by
interstate carriers.
To Take Stand Monday.
Mr. Thorn ended the opening statement
before the committee for the railroads
He will go on the stand again Mon
day, however. subject to examination
by the members of the committee.
Before concluding his remarks today
Mr. Thorn said that the railroads would
NOT introduce the subject of their re-