The Ordway new era., 1916-12-08
new POLICY NEEDED
IN COVER N NJ Mt
RAILWAY CONTROL
HeIpfulness andEnCouragemanl
Urged by Alfred ?. Thorn,
CREDIT MUST Be IMPROVED
Increase of Transportation Fae'i'tie'
Necessary to Secure Relief Fro"
High Cost Of Living May Thus e'
Provided For b. the Railroads.

Necessary TO secure neUe' ''O'
High Cost Of Living May Thus b.
Provided For b. the Railroads.
Washington. Nov. 2S.-A new policy
OF government railroad regulation
based on constructive principles ot
heIpfulness and ENCOURAGEMENT Instead
of upon principles OF repression and
punishment. was urged by Alfred L.
Thorn. counsel for the Railway ENecu'
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.
'It is proposed by the joint resolu-
tion OF Congress-" said Mr.. Thorn. TO
go into a 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 Suficieney.
Mr.. Thorn contendcd that the real in.
tereSt Of the public is in being assured
OF certainty. safety and sufficiency 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
Nj Thom proposed an increase OF
transportation facilities as a method
Of securing relief from the high cost
Of living There have been less than
100 miles Of new railroad construct
al IN the United States during the past
rear" he said. less than IN any year
since 1SfS- except the period OF the
Civil War and yet the cost OF living Is
daily advancing owing 10 shortage Of
supplies vhIeh might - rcmcdied by
securing scceSS 10 new areas o, pro-
d1rrtol
Cre5T: SUs- Se improved.
This leads 20 The consideration as to
whe;bar rzurraf credit : as good as
tn public Interest requires II Is i'm
Fspss51E@ tp- 7zl-0ads to earn enough
TO supply the ne-s-sary new facilities
from current reTsr.ge- They must be
p-0TlieI from credit Investors can
D1- - c0-=-7=L hur must be attracted
Among the coalitions affecting rail-
road credit which deter investors he
-s1Ci1ae1 the following:
-Flrs-. Railroad revenues are not
controlled hr investors. but are fixed
and limited By governmental authority
sod not by one but by several govern
rcs1tal suthD-ltiez which do not recog-
a-z@ responsibility FOR assured results
to investors sui are uncoordinated.
'-Se"Uud. Railroads cannot control
Ead TIE c'TsruDeut cannot and does
no- LIMIT the expense account
Third. The present system OF regu-
!s-5r'I l. taEf-d On a policy of regulation
AID Correction and not on a policy of
hslTrfClDess and encouragement.
FD1--s. The outstanding obligations
- tbs railroads have already exceeded
t1E Ensnelsl rule of safety and involve
L 1-sT1'Jlsy-TsJnste amount of obliga-
-5,-S tearing fixed charges.
PfrE- The Investor must accept a
sztc-7sjratE obligation or security with
30 ssst7zraDce Of surplus OF earnings
y sg55D.- &;
-ET,a, Drhsr competitive lines of In.
Z ntt
-s@Tenta- The railroad business is
sarzssiy controlled by political instead
or business considerations.
look Forward, Not Back.
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 look
forward In this matter and make a
fresh assessment of circumstances In
order to deal helpfuIIy and Intelligent
~ with the problem Abuses are
no more prevalent in the railroad bust.
ness today than in any other business
humanely conducted. The great ques.
tlon now Is whether the existing sys
TEN OF regulation gives the public re-
hable 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
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 repuIa flor
VIII be accepted by public Judgment