New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1916-11-24
Alfred P. Thorn Estimates Their
Requirements at $780,
100000 Every Year
THAT DOES NOT INCLUDE
J ANY NEW CONSTRUCTION
Counsel for Railway Executives Ad-
yisory Committee Favors Central
ControI-Says Public Must Have
FOrthcOming-Tel1s of Goudging
New York Central by Illinois.

/ Washington, Nov. 24.-Railroads
will need $1,25 100000 additional
capital annually for the next ten or
twelve years to increase their facili-
ties to handle the country's growing
. commerce, Alfred P. Thorn, counsel
for the railway executives advisory
committee, told the congressional
railroad investigating committee to-
day, continuing his statement on be-
half of the railroads begun yesterday.
About $3.50, 100000 year addition
al will be required, he said, to refund
maturing Indebtedness. .-
! To attract investors, Mr.. Thorn
suggested that federal regulation
should replace the present system of
j authority divided between the states
and the central government.
Does Not Include Extensions.
Referring to the need of additional
railroad facilities, Mr.. Thorn said:
1T has been found that the wealth
of, the country has been increasing
at the rate of or 9 per cent. a year
and the same ratio of increase has
held good as to the demand for trans
portation. AS the forces which have
affected the growth and development
of the past apparently still continue
be expected to continue for the next
ten or fifteen years at least, the in
vestment in railroad facilities to meet
the large requirements Of the future
must consequently grow at a cor
responding rate of increase. The es-
innate Of $3.50, 100000 for addition
al transportation facilities includes
nothing for extensions into new ter
ritoSy, he added.
where is this money or any sum
approximating it to come from %
asked Mr.. Thorn. 'This is of vital
interest to the public because on it's
successful solution depends the COM
mercial facilities Of the country.
Would 1T do to confront the investors,
when asking for this great investment,
with a situation where the revenues
of the railroads are not subject to the
control of the investors but are fixed
and limited not only by governmental
authority but by many unco-ordinated
state authorities in no way responsible
to each other, and where the railroads
cannot control and the government
cannot and does not limit the expense
account"
New York Central Heavily Taxed.
Mr.. Thorn referred to the recent
case in which the New York Central,
which has not over twenty miles of
lines in Illinois was taxed 100000 by
the state of Illinois as a condition Of
the consent of that state to the issue
of certain securities. He asked why
the states of New York, Ohio, Indiana
and the others through which the road
runs could not with much reason
exercise the same right.
= "If they did," he continued, "com-
merce as a whole would be enormous
~ burdened. If they did not, then
their own commerce may help to bear
the burden Of this tax placed upon the
road by the state of Illinois. contrary
to their views of the justice Of such
a tax.
Blocking 'New Haven" Improvements.
AS another illustration of the con-
fiict of state action, the New York,
New Haven and Hartford in the sum-
mer of 1913 arranged for the sale of
$67,000,000 of convertible bonds.
The states of Rhode Island and
Connecticut gave their approval, but
the approval of Massachusetts could
not be obtained. The result that the
ISSUE failed and the consequent in
aolllty of the road to furnish the pro-
posed new facilities in the way of
new equipment and enlarged terminals
IS largely responsible for the great
congestion of business and Interrupt
ton Of commerce throughout the
whole of New England and surround
ing regions