News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1916-12-06
new POLICY NEEDED
IN COVER n MENT
RAILWAY CONTROL
Helpfulness andEncourag8m0nt
Urged by Alfred ?. Thorn.
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.

| WdSulIlSlOu, NOV. Ca new pOIlC,
| OF government railroad regulation
based on constructive principles O
helpfulness and encouragement instead
of upon principles of repression ant
punishment, was urged by Alfred P
Thorn, counsel for the Railway Execu
tives' Advisory Committee, the frs
witness on behalf of the railroads be
fore the Newlands Joint Committee OF
Interstate Commerce, which has insti
tuted general inquiry into the prob
lens of railroad regulation.
ut is proposed by the joint resolu
ton Of Congress-" said Mr.. Thorn, "tc
go into comprehensive study Of the
whole subject Of transportation, tt
make new assessment, after 20 years
Of experiment, of its history, its pres
ent conditions and its future needs
The railroads accept the view that reg
ulation is 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 Sufficiency.
Mr.. Thorn contended 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 q
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 1913, except the period of the
Civil War, and yet the cost of living is
daily advancing owing to shortage Of
supplies which might be remedied by
securing access 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 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 cam
NO hn Int hn otf ctn cd -
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 by several govern
mental authorities, which do not recog-
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 policy of regulation
and correction and not on a policy of
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
obligation or security with
no assurance Of surplus of earnings
to support it.
sixth, Other competitive lines of in
present superior attractions.
Seventh, The railroad business is
largely controlled by political instead
Of business considerations.
Look Forward, Not Back.
1--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
in this matter and make a
fresh assessment of circumstances in
rider to deal helpfully and intelligent
Y with the problem. Abuses are
10 more prevalent in the railroad bust
less today than in any other business |
conducted. The great ques- |
ion now is whether the existing sys- |
EN- of regulation gives the public re-
liable assurance of sufficient present
nd future railroad facilities.
"Those who oppose any change must
make their appeal on the ground that
he present systems assure the public
the continued adequacy of trans
ortation facilities. If they do not. no
rgument based on the deSirability of
ne present dual system of regulation
ill be accepted by public Judgment.
he question of states rights IS not
lvolved. If the regulation of transpor-
Ition facilities privately owned should
Ill government ownership must fol-
w. and then all power of the states
-er the railroads would disappear.
"Let us debate this question, then,