Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-11-24
REACH AGREEMENT
ON 8-H0UR LAW TEST
Federal Attorneys and Railroad
Lawyers to Pick Typical
Case for Appeal.
BOTH PROMISE COOPERATION
Will Be Bound by Supreme Court
Decision and All Other Suits
to Be Dropped.

tBv Associated r'-"sst
WASHINGTON. November e3-Con-
ferences between Attorney General
Gregory and counsel for important
railway systems of the country. look
ing TO the expedition to the Supreme
Court Of one Of the suits attacking
the consti;utionality of the Adamson
act. virtually were concluded today.
and the question OF which shall be
made the test case was placed in the
hands Of Department Of Justice attov-
ncys and legal representatives OF the
railroads now in Kansas CITY
It was said tonight that the ONLY
matter to be determined in Kansas
City is whether the sui, Of the Mis-
souri, Oklahoma and Gulf Railroad.
decided yesterday against the govern
mcnt. or that OF the Santa Fc. set for
hearing Tomorrow. shall be made the
test case. In substance. the plan
adopted here provides that both the
department and the railroads agree in
every way to expedite and actively
press the case to be determined on to
final decision in the supreme Court
and that during the pcndency OF this
suit the government Will not begin
any prosecutions OF carriers for fail
ure TO apply the law. During its
pendency the carriers will institute
no more suits. and at its determination
both parties to the agreement will be
bound by the Supreme Court decision
the carriers agreeing not to bring
further actions if the law is found
constitutional and to drop all others
Neither party is bound by the agree
mcnt TO refrain from efforts to secure
legislation which NIGH; change tho
Adanson act.
IN HANDS OF ATTORNEYS
IN KANSAS CITY
II was explained tonight that the
question of choosing "A test case had
neys in Kansas city because of the
warrant an agreement on this point
The joint congressional committee
Investigating the subject of transpor-
tation began its work in earnest to-
day. with a. r.. Thorn. counsel for the
railway executives advisory committee.
speaking for two hours and a half on
railroad problems of the day. He will
continue tomorrow. and may not end
his argument before the end of the
week.
Mr.. Thorn went into many phases
of railroad conditions. but dwelt par
tcularly on their need for credit If
they are 10 extend and keep trans
portation facilities up to the standard
the public demands. He said that in
the last sixteen years the percentage
o! railroad securities constituting liens
against the property had Increased
from about - per cent to about 90
per cent of the total securities. and
predicted that fnancierS who would
come before the committee later would
testify that the danger line had been
reached. The investing public. Mr.
Thorn said. demanded a per cent re-
turn and per cent surplus fund
yearly 10 provide against lean years.
and such return is almost impossible
on railroad stocks under present condi-
tonS. He pointed out that Europe
not only has ceased TO take American
railway stocks. but is selling back
hundreds of millions OF those once
owned, and that the new money to
keep the roads going. to extend them
and to open up vast undevclopcd fields.
must come from the American people.
who are now unwilling to invest
IF government ownership of rail-
roads comes in this country" said MIR.
Thorn. 't will be because of the need
of credit which private owners cannot
supply"
BLtMES PRESENT SYSTEM
OF CORRECTIVE REGULATION
Mr.. Thorn blamed the present system
of corrective" regulation, divided be-
tween the State and Federal govern
ling the public and the carriers. and
appealed for a discussion OF necessary
changes mot upon any mere theory or
jealousy as to the distribution OF gov
ernmental power. but upon the large
issue of what public interest requires"
Rates, Mr. Thorn declared. are less
important to public interest than Ger
tainty. safety and sutliciency of trans
portation."
Under present conditions, i'm which
the railroad business is largely con-
trolled by political instead OF business
considerations" lie added, railroad
credit is so poor and returns so small
that adequate extensions Of lines into
undcvcloped territory and enlargement
OF facilities are impossible. He said
increased transportation facilities
would tend to reduce the cost of living
oy opening up new country, thereby
causing increased production.
Mr.. Thorn pointed out that the pres
ent system Of railroad regulation had
It's beginning I'm the abuses Of the past.
and was based the principles Of
repression, correction and punishment.
rather than on constructive principles
REGULATION ENDURING
PART OF GOVERNMENT
"Thc railroads accept the view that
regulation is u 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 in
terests can be considered"
In support OF his contention that