The Lamar register., 1916-12-13
new POLICY NEEDED
IN COVE R N M INT
RAILWAY CONTROL
HeIpfuIneSS andEnCOurag0m0nt
Urged by Alfred P. 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.


Provided For by the Railroads
Washington, Nov. 2S.-A new policy
Of government railroad regulation.
based on constructive principles of
helpfulness and encouragement Instead
OF upon principles of repression and
punishment, was urged by Alfred p
Thorn, counsel for the Railway Execu.
dves' Advisory Committee, the first
witness on behalf OF the railroads be.
fore the Newlands Joint Committee on
Interstate Commerce. which has instl-
tuted general inquiry into the prob
lens OF railroad regulation.
1T is proposed by the Joint resolu-
ton OF Congress-" said Mr.. Thorn, ito
20 into "A comprehensive study of the
whole subject Of transportation, to
make a new assessment, aftef 20 years
Of experiment, OF Its history. Its pres
ent conditions and its future needs
The railroads accept the view that reg
ulation liz a permanent and enduring
part Of government In America and
that the arst duty OF the carriers is to
the public. That duty IL 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 sufieieney.
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. L. In reality a
second consideration. he said.
Mr.. Thom proposed an increase of
transportation facilities as a method
Of securing relief from the high cost OF
living There have been less than LOCO
miles OF new railroad constructed In
the United States during the past year."
he said, less than In any year since
lS4S, 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-
tion.
Credit Must Be Improved.
This leads to the consideration as to
whether railroad credit is as good as
the public interest requires. II 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 can
not be coerced. but must be attracted"
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
helpfulness and encouragement.
Fourth, The outstanding obligations
of the railroads have already exceeded
the financial rule of safety and involve
disproportionate amount of obliga-
tions bearing fixed charges.
Fifth, The investor must accept a
subordinate obligation OF security with
no assurance of 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.
I'VE 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 helpfuIly and intelligent
ly with the problem. Abuses are
no more prevalent in the railroad busi-
ness today than in any other business
humanely conducted. The great ques-
hon now is whether the existing sys-
tenn Of regulation gives the public re-
liable assurance OF sufficient present