Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1916-11-24
COMMITTEE IS TOLD
Of RAILROADS VIEWS
ON TRANSPORTATION
A. P. Thomr Counsel for Al
vSoy Committee Discusses
Conditions Before Joint
Congressional Committee

WASHINGTON, Nov. 2S.-The rail-
-oad view OF what IS the matter with
me country's transportation facilities
were presented 10 the Joint congressional
investigating committee today by Alfred
p. Thorn, counsel for the railway execu-
lives advisory committee.
Mr.. Thorn blamed the present system
81 corrective" regulation. divided be-
tween the state and federal governments.
Tor most OF the problems troubling the
public and the carriers, and appealed for
= discussion OF necessary changes mo,
Upon any mere theory or jealousy as 70
The distribution OF governmental power.
,ut upon the large issue OF what public
interest requires"
Rates. Mr.. Thorn declared. are less
important 10 public interest than Ger
taihty, safety and sufficiency OF trans
portation- ....-.
Under present condition under which
the railroad bushes is largely controlled
BY political instead or business consider
atoms he added, railroad credit is so
Door and returns so small that adequate
extensions OF lines into undevelOped ter
ritory and enlargement of facilities are
impossible" he said increased trans
portation facilities would tend 10 reduce
the cost or living by opening up new
country thereby causing increased pro-
QlCLlOQ4
ABUSES OF THE PAST.
Mr. Thorn pointed out that the present
system OF railroad regulation had its
beginning in the abuses Of the past and
was based on the principles OF repres-
sion. correction and punishment, rather
than on constructive principles.
The railroads accept the view that
regulation Is a permanent and enduring
part OF government in America and thar
public. That duty is TO AFFORD reason
able facilities on reasonable terms and at
reasonable rates and this must be done
before any private interests can be con-
stdered.''
In support Of his contention that "the
hrst consideration Of the public is to OBJ
tain transportation facilities" Mr.. Thorn
declared that when a nation wide strike
recently threatened TO tie up the rail-
roads. business men would have been
willing to pay almost anything 10 ger
their goods 20 the market"
The present systems OF regulation are
entirely adequate TO protect the public
against exorbitant rates but are not ade-
quats 70 insure TO the public sufficient
facilities for its present and future re-
quirements"
Less than 1000 miles OF new rail-
roads have been constructed 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 4 shortage OF
supplies which might be remedied by Sc
curing access TO new areas OF produc-
zion"
RAILROAD CREDIT.
Among the conditions affecting rail-
road credit which deter investors Mr..
Thorn mentioned the following.
Railroad revenues are not controlled
BY investors but are fixed and limited
by governmental authority and not by
one but By several governmental authOri-
ties. which do not recognize response
bility for assured results to investors
and are entirely uncO-Ordinated-
Railroads cannot control and the
government cannot and does not limit
The expense account.
The present system OF regulation Is
based on a policy OF regulation and cor
rection and not on policy Of helpful
ness and encouragement
"The outstanding obligations OF the
railroads have already exceeded the
financial rule OF safety and involve a
disproportionste amount OF obligationf
bearing fixed charges
The investor must accept a subordi-
nate obligation o. security with no as
surance Of a surplus OF earnings TO sup
port II.
other competitive lines OF Investment
present superior attractions"
Let Us get fair view or the prob
lew now under consideration" said Mr..
Thorn. let US attempt 20 define an
issue that viii re accepted By all as the
issue between those who advocate some
change in the existing system and those
who oppose any change Those who OPP
pose any change must make their appeal
on the ground that the present system
assures the public OF the continued ade-
quacy OF transportation facilities.
''If the public is not assured of ade-
0ua.s railra6 service the question of
what are sometimes termed think i'm
properly-'ststes' rights are not involv-
I'd. for such n situation would necessari-
" mean either larger and better national
regulation CT government ownership"