Roanoke Rapids herald. [volume] (Roanoke Rapids, N.C.) 1914-192?, 1916-12-01
new POLICY NEEDED
IN COVE R Nm Mt
RAILWAY CONTROL
Rs'pfuIness andEncouragemsni
Urgsd by Alfred ?. Thon.
CREDIT MUST Be- IMPROVED

Increase Of Transportation Facilities
Necessary to Secure Relief From
High Cost Of Living May Thus Be
Provided For by the Rain Dads.
! Washington, Nov 2S.-A new policy
Of government railroad regulation,
| based on constructive principles of
helpfulness and encouragement Instead
0 upon principles of repression and
u ishment, was urged by Alfred p
liolh, counsel for the Railway Execu
ti,es' Advisory Committee, the first
witness On behalf Of the railroads be-
/ fore the Newlands Joint Committee on
Interstate Commerce. which has instl
tnted II general inquiry into the prob
lens Of railroad regulation.
"lt is proposed by the Joint resolu-
tion Of Congress" said Mr. Thorn, Ito
90 into comprehensive study OF the
whole subject Of transportation, to
make II new assessment, after 90 years
vi experiment. OF Its history, Its pres.
ent conditions and Its future needs
,&fhe railroads accept the view that reg
ulali0n is II 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 Suffieienoy
Mr., Thom contended that the real In
tefest Of the public is in being assured
Of certainty, safety and sutficiency Of
transportation facilities, rather than in
rates. The first consideration OF the
public Is to obtain transportation facill
ties. What the cost is, is In reality
second consideration, he said.
Mr. Thom proposed an increase Of
transportation facilities as method
uI securing relief from the high cost OF
living. There have been less than 900
niles of new railroad constructed IN
the United States during the past year"
he said, less than IN any year since
lSiS except the period Of the Civil
War, and yet the cost OF living is daily
advancing owing to a shortage OF sup
Plies which might be remedied by Sc
curing access to new areas OF produc-
ton,
Credit Must Be Improved.
This leads to the consideration as to
whether railroad credit is as good as
the public interest requires. II Is im'
possible for railroads to earn enough
10 supply the necessary new facilities
from current revenue. They must be
provided from credit Investors can
NOT he coerced, hut must be attracted
Among the conditions affecting rail
road credit which deter investors he
mentioned the following:
"FUst. Railroad revenues are not
OnIrolled 10y investors. but are nxeu
and limited by governmental authority
and not by one but by several govern
ucntal authorities. which do not recog-
uize responsibility for assured results
10 investors and are uncoordinated.
Second. Railroads cannot control
aud the government cannot ana uoes
not limit the expense account.
Third, The present system OF regu-
ation is based on policy of regulation
and correction and not on a policy OF
helnfulness and encouragement.
Fourth, The outstanding obligations
of the railroads have already exceeded
the financial rule Of safety and involve
disproportonate amount OF obliga-
tions bearing fixed charges.
Fifth, The investor must accept
subordinate obligation or security with
no assurance Of surplus of earnings
to support 1t.
sixth, Other competitive lines or 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.. Thom, 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
| fresh assessment Of circumstances ID
order to dea helpfully and Intelligent.
| ly with the problem, Abuses are
no more prevalent in the railroad bust.
ness tOiay than in any other business
| humanely conducted Tie great ques
tion now is whether the existing sys'
ten Of regulation gives the public re
| liahle asSuranre 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 pubhe
of the continued adequacy OF trans
portatiou facilities II they do not no
argument based on the desirabilily OF
The present dual system OF regulation
win be accepted by public Judgment
The question Of states rights Is not
| involved. If the regulation OF transpor
tatlon facilities privately owned should
! fail government ownership must fol
low. and then all power OF the states
3ver the railroads would disappear
Let US debate this question, then
not upon any mere theory or jealousy
as to the distribution Of governmental
power. but upon the large issue of
what the public interest requires E
respect Of the assurance OF adequate
transportation service"
M x,o,~ Cku.ot,onoo ebox,u.,, ~