New Britain herald., 1916-11-23
No Encouragement,
Only Regulation and
Correction, Says
Spokesman for Lines
TOO MUCH POLITICS
SCARES INVESTORS

Railroad Business Conducted Today
Similar to Other Concerns and
Abuses Have Misrepresentation of
Coordination Between States and
ments-Constructio at Minimum.
Washington, Nov. 23.-First actual
testimony in the broad subject OF
the joint congressional railroad inves.
tigation committee. Alfred P. Tho1r
of this city, general counsel for ths
Southern Railway and counsel for the
railway executives advisory commit.
tee, was the first witness in presenting
the railroads side of the case
The hearing is the first of serie.
which will continue indefinitely and
will cover railroad credit, federal con
troll, national incorporation, z;overn
ment ownership, wages and other inn
portant subjects.
man, blamed the present system o
corrective regulation" divided be
tween the state and federal govern
ments, for most of the problems d
the public and the carriers, and ap
pealed for discussion of necessary
changes, mot upon any mere theor
or jealousy as to the distribution d
governmental power, but upon TIL
10, of h a int 1sa
quires.
Rates, Mr.. Thorn declared, are LED
important to public interest than ''ceI
tainty, safety, and sufficiency of trana
portation.'
Under present conditions in Wllid
"the railroad business is largely cor
! trolled by political instead of busine]
| considerations, he addel, "railro 4
credit is to poor and returns 50 rna|
that adequate extensions Of lines in1
undeveloped territory and cniargI
ment of facilities are impossible" II
said increased transportation facilitid
would tend to reduce the high cost 4
living by opening up new. countrl
thereby causing increased productioI
Railroads Compared TO Banks.
Mr.. Thorn pointed cut that ri
present system of railroad REGULATED
had it's beginning in the abuses OF til
past and was based on the principle
of recession and punishment. ratiii
than on constructive principle.
contrasted this with the plan Of sol
ernmenta1 regulation Of banks. I'll
system OF bank regulation" lie sal
was born of the spirit Of helpful
ness and encouragement intended
build UP and make adequate Tor !
American people it's system of nation
banks. The railroads accept the We
that regulation is a permanent az
enduring part of government
America and that the first duty or
carriers is to the public"
In support of his contention "
'the first consideration of the Fup
is to obtain transportation facllilie
and that 1.-THE cost is in reallty Sc
ond consideration" Mr.. Thom
cIared that when a nationwide SUI
recently threatened to tie UP the -
roads "business men would nave pe1
willing to pay almost anyIhlns "
their goods to market" he cIteu
present car shortage, the present ~
barge and that of last spring caus
by Inadequate terminal facilities.
Falling Of in Construction.
LESS than one thousand miles
new railroads has been conslr uc'eu
the United States during the pa
vear" he said, land less than IN a
vear since 1848, except the perlou
the Civil war and yet the cost OF II
ing is daily advancing, OWING W
shortage of supplies which might
remedied by securing access 20 he
areas of production
AS illustrating the inequality
RECOMMENDATION facilities at tin
when new railroad building has nea
1v stopped. Mr.. Thorn showed tn
while New Jersey has thirty-one mi
of railroad per 100 square miles
territory. the average in the Unit
States is only 1853 miles, and
idaho there are only 3.35 miles ID
Inn square miles. Less than thirt
three ner cent. of the natural
sources have railroad facilities.
.ezUiu the undeveloped states
eo+iefed to stop railroad constructi
,,ndnr such a condition of Inequality
Mr. Thorn asked. "It is impossif
for railroads to earn enough TO su
nlv the necessary new facilities fro
current revenue. They must be pr
vided from credit. Investors cam
be coerced but must be attracted"
Among the conditions affecti
railroad credit which deter investo
Mr. Thorn mentioned the following:
RAILROAD revenues are not co
trolled by investors but are fixed q
limited by governmental authors
and not by one but by several cover
mental authorities, which do not re