The Devils Lake world and inter-ocean. (Devils Lake, N.D.) 1915-1920, 1916-12-07
new POLICY ] 1. NEEDED
IN GOVERNMENT
RAILWAY CONTROL
Aelpfulnass Acknowledgment
luIged BY Alfred 2. Thorn.
~ f 6ga
MUST Be IMPROVED

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..
Washington, Nov. ga new policy
Of government railroad regulation,
based on constructive principles Of
h%elpfulness and encouragement instead
OF upon principles of repression and
punishment, was urged by Alfred P.
Thorn, counsel for the Railway ESeeu-
tives' Advisory Committee, the first
witness on behalf of the railroads he.
lore the Newlands Joint Committee on,
Interstate Commerce. Which has insti
tuted a general inquiry into the prob
lens of railroad regulation.
ut is proposed by the joint rcsulu
ton of Congress-" said Mr.. Thorn. ito
go into a comprehensive study OF the.
whole subject of transportation, to.
make a new assessment, after % years
of experiment, of its history. its ,2,ans
ent conditions and it's future needs,
The railroads accept the view that ROC
ulation is a permanent and enduring
part OF government III America and
that the first duty of the carriers is to
the public. That duty is to affprl
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 suficiency.
MI. Thorn contended that the real in.
terest of the public is 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 is, is in reality a
second consideration, he said.
Mr.. Thorn proposed an increase of
transportation facilities as a 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 acces to new areas of pro-
duction.
Credit Must Be Improved.
"This leads to the consideration as to
whether railroad credit is as good as
the public interest requires. 1t is4im-
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"
4 Among the conditions affecting rail.
road credit which deter investors he
mentioned the following:
First, Railroad revenues are not
4controlled by investors, but are fixed
and limited by governmental authority
and not by one but by several govern
mental authorities, which do not reeog.
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.
lation is based on a policy of regulation
and correction and not on a policy of
h%elpfulness and encouragement.
Fourth. The outstanding obligations
OF the railroads have already exceeded
the financial rule of safety and involve
a disproportionate amount Of obliga-
lions bearing fixed charges.
Fifth. The investor must accept a
subordinate obligation or security with
40 assurance Of q surplus Of earnings
to support 1t.
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, 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 helpfully and intelligent.
y with the problem. Abuses are
mo more, prevaient: in the railroad, bust.
ness today than In any other business
hunanely conducted. The great ques-s
ton now Is whether the existing sys:
tenn OF regulation gives the public re-,
liable assurance Of sufficient. present
and future railroad facilities. j II
Those who oppose any change must
make their appeal OF the. ground tina,
lsthe pfesentfsystems assure the pubic
of the continued adequacy Of trans.
portation facilities. If they do not, No
argument based on the desirability Of
the present dual. system of regulation
wiz be. accepted by, 'public Judgment.
The question Of states rights is not
liinyolyeda II the regulatf6nsof franspor.
t 4 eall'a facilities privateiyspwned should
Ef1ila government ownerSiip must fol.