West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1916-12-28
NEW POLICY NEEDED
IN GOVERN NE MT
RAILWAY CONTROL
HslpfulnaSS andEncOuragsmsni
Urged by Alfred P. Thorn,
CREDIT MUST Be IMPROVED
Increase Of Transportation Facilities
Necessary 20 Secure Relief From
High Cost of Living May Thus Be
Provided For by tho Railroads.

'NS""'J W SeSufe Heliot from
High Cost of Living May Thus Be
Provided For by tho Railroads.
OF government railroad regulation,
b sed on constructive principles OF
hclpfulness and encouragement instead
OF upon principles OF repression and
punishment. was urged by Alfred II.
Thom, counsel for the Railway Execu-
tiyes' Advisory Committee. the first
witness ON behalf OF the railroads be-
fo'e the Newlands Joint Committee on
Interstate Commerce. which has insti-
tLted a general inquiry into the prob
lens OF railroad regulation.
1T is proposed by the Joint resolu.
ton OF Congress-" said Mr.. Thorn, ito
go into comprehensive study of the
whole subject OF transportation. to
make new assessment, after 20 years
or experiment, of its history. its pres
ent conditions and its future needs
me railroads accept the view that reg
niation Is permanent and enduring
part or governm> mt I'm America and
that the first duty OF the carriers is 10
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
esta can be considered"
Certainty, Safety and Suffioiency.
Mr.. Thorn contended that the real in.
terest OF the public is I'm being assured
or certainty. safety and sufhciency of
transportation facilities. rather than I'm
rates. The first consideration OF the
public is TO obtain transportation facili-
ties. What the cost is, Is in reality
second consideration. he said.
Mr.. Thorn proposed an increase OF
| transportation facilities as method
OF securing relief from the high cost
| OF livinE. '"rhere have been less than
1000 miles OF new railroad construct
| ed I'm the United States during the past
| year" he said less than I'm any year
since 1913, except the period OF the
Civil War and yet the cost Of living IS
| daily advancing owing TO n shortage OF
supplies which might be remedled by
securing access to new areas OF pro-
| ductlon
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 he 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 10y several govern.
mental authorities. which do not recog-
nize responsibility for assured results
to investors and are unco0rdinated
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 oblign
tons bearing fixed charges
Fifth. The investor must accept
subordinate obligation or security with
no assurance of a surplus Of earning.
10 support e.
sixth. Other competitive lines OF I'm
vestmeut present superior attractions
Seventh. The railroad business Is
largely controlled 10y political Instead
Of business considerations.
Look Forward, Not Back.
I'VE may debate about what has
'aused the present conditions" said
| N'r Thorn. but we cannot debate about
what the people need. The President
has taken the view that we must Iook
forward IN this matter and make n
fresh assessment Of circumstances I'm
order To deal helpfully and intelligent
~ with the problem. Abuses are
No more prevalent I'm the railroad bust
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 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
" the continued adequacy Of Trans.
portadon facilities II they do not. no
argument based on the deslrability OF
me present dual system Of regulation
viii be accepted by public judgment.
The question Of states rights is not
! involved. II the regulation OF transpo-.
tation facilities privately owned should
| fail government ownership must FOL.
| how. and then an power of the states
/ over the railroads would disappear.
Let US debate this question. then.
not upon any mere theory or jealousy
as 10 the distribution Of governmental
! power. but upon tho large issue OF
| what the public Interest requires I'm
/ respect Of the assurance Of adequate
! transportation service"