The Morgan City daily review. (Morgan City, La.) 1916-1920, 1916-12-02
new POLICY NEEDED :
IN COVE NJ ENT
RAILWAY CONTROL
He|ptu|nesS andEncouragemant
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.

ss'S' SSSS " @'s''S way ''Ss ~
Provided For by the Railroads.
Washington, Nov. 2S.-A new policy
Of government railroad regulation,
based on constructive principles OK
helpfulneSs and encouragement instead
of upon principles Of repression and
punishment. was urged by Alfred +.
Thorn, counsel for the Railway Exeru-
tiyeS' Advisory Committee. the first
witness on behalf of the railroads be
fore the Newlantls Joint Committee on
Interstate Commerce. which has insti-
tuted general inquiry into the prob
lens of railroad regulation.
1T is proposed by the joint resolu-
ton of Congress- said Mr.. Thorn, Ito
90 into comprehensive study Of the
whole subject of transportation. to
make Il new assessment after % years
Of experiment. of its history its pres
ent conditions and its future needs.
The railroads accept the view that reg
ulatiOn is a 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 on reasonable
terms and at reasonable rates. and this
must be done before any private inter
ests can be considered"
Certainty, Safety and Suhiciency.
Mr.. Thorn contended that the real in
~ ho ,,vh1 to In h0sny
of certainty. safety and sutticiency Of
transportation facilities. rather than In
rates. The first consideration OF the
public is to obtain transportation facili-
ties. What the cost is, Is in reality a
second consideration. he said.
Mr.. Thorn 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 railroad construct
ed in the United States during the past
year." he said, LESS than In any year
since 1S4S, except the period Of the
Civil War, and yet the cost Of living Is
daily advancing owing to shortage Of
supplies which might be remedied 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 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 coerced, 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 by one but by several govern
mental authorities, which do not recOg-
nize responsibility for assured results
to investors and are uncoOrdinated.
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
and correction and not on policy OF
helpfulness and encouragement.
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 .
subordinate obligation or security with
no assurance Of a surplus of earnings
to support it.
sixth, Other competitive lines Of in
vestment 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 lOoh
forward in this matter and make q
fresh assessment Of circumstances III
VIuCl " uC0l uClPAuAIy 0AA
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 Ne
liable assurance Of sufficient present
and future railroad facilities.
''Those who oppose any change must
make their appeal on the ground tina,
the present systems assure the public
Of the continued adequacy Of trans
portation facilities. II they do not. nc
argument based on the desira bility Of
the present dual system Of regulat iou
Will be accepted by public judgment
The question Of states rights Is no,
involved. II the regulation Of transpor
tation facilities privately owned should
fall government ownership must fol
low, and then al power Of the states
ever the railroads would disappear
Let 10 debate this question. then
not upon any mere theory or Jealousy
q to the distribution Of governmental
power. but upon the large issue Of
-.Aka~ o.