Greene County herald. (Leakesville, Miss.) 1898-current, 1916-12-01
new POLICY NEEDED
IN GOVERN ME1T
RAILWAY CONTROL
hslpfulngSs and Encouragement
Urged by Alfred ?. 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.

Washing on, 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-
tives' Advisory Committee, the first
witness on behalf Of the railroads be-
fore the Newlands Joint Committee on
Interstate Commerce, which has insti-
tuted general inquiry into the prob
lens OF railroad regulation.
tton OF Congress" said Mr.. Thorn, ITO
20 into q comprehensive study Of the
whole subject OF transportation. to
make new assessment, after 20 years
Of experiment, Of its history, its pfes-
ent conditions and its future needs.
The railroads accept the view that reg
ulation IL 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.v
Certainty, Safety and suffioisncy.
Mr.. Thorn contended that the real In
terest of the public IA In being assured
of certainty, safety and suficiency Of
transportation facilities, rather than In
rates. The first consideration of the
public is to obtain transportation facili-
ties. What the cost 10, is In reality
second consideration, he said.
Mr. Thorn proposed an increase of
transportation facilities as q 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 a shortage of
supplies which might be remedied by
securing access to new areas Of pro-
duction.
Credit Must Ds 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-
lati0n Is based on a policy OF regulation
and correction and not on a 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 obnga-
lions bearing fixed charges.
Fifth, The investor must accept q
subordinate obligation or security with
no assurance Of 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, Net Back,