Okolona messenger. (Okolona, Miss.) 1900-current, 1916-12-14
new POLICY NEEDED
IN GOV Err n NE Mt
RAILWAY CONTROL
ae|pfulnsss electromagnetic
\, Urged by Alfred ?. Thorn.
CREDIT MUST Be IMPROVED
Increase Of Transportation Facilities
Necessary 70 Secure Relief From
Nigh Cost Of Living May Thus Be
Provided Fer by the Railroads.

nigh Cost OF Living May mus De
Provided Fer by the Railroads.
Washington, Nov. ga new policy
Of government railroad regulation,
based ON constructive principles Of
, helpfulness and encouragement instead
Pf upon principles of repression and
punishment, was urged by Alfred p.
Thorn, counsel for the Railway Execu-
tiFes' Advisory Committee, the first
witness on behalf Of the railroads be-
fo1e the Newlands Joint Committee on
Interstate Commerce, which has insti-
tuted general inquiry into the prob
leIhs of railroad regulation.
ut is proposed by the joint resolu
ton of Congress-" said Mr.. Thorn, Ito
go into comprehensive study Of the
>. whole subject of transportation, to
\ tmake new assessment, afters29 years
pf experiment, of its history, its pres
1nt conditions and its future needs.
fhe railroads accept the view that reg
Vlation is permanent and enduring
BART Of government in America and
pat the first duty Of the carriers is to
Ae public. That duty Is to afford
n reasonable facilities on reasonable
z FERNS and at reasonable rates, and this
must be done before any private inter
tests can be considered"
Certainty, Safety and Suffieisnoy.
II Mr.. Thorn contended that the real in
Of the public Is in being assured
bf certainty. safety and sufficiency of
transportation facilities. rather than in
rates. The first consideration Of the
public II to obtain transportation facili-
Ties. What the cost Ia, IL in reality q
second consideration, he said.
u Mr.. Thorn proposed an Increase Of
N transportation facilities 40 . method
Of securing relief from tho high cost
Of nvfaR. 'srhsre have been less than
1000 MxRse 81 new railrosd construct
ed In tie United States during the past
year." he said, ."less than In any year
siAce is4G except the period a the
Civil War, and ret the cost o. itving'ts
AdAiiy advancing owing TO . shortage u
lsuppliss which might be ssassdisA b
Ysecur4ng Aeeeess ~ nsU seeast efsnEN
/ luctioa.
~ crsdit hAust nsrtmpesvsAs
\. This leads T. tbs consideration - "a
,bxhsther railroad credit n a. good a.
he puhlie interest requires 1t u i'm
fpossible for railroads 70 earn enoagh
| 70 suppqy the nsessA&ry new fxtfltttes
from current revenue. They must be
J provided from credit. Investors can
\ oct b eoerced. bat must Be attracted.
d Among the conditions affecting rail.
aread credit which deter investors h
tmsntioned ths following:
First, Railroad revenues are Do<
[ controlled BY investors. but are Axed
and limited By governmental authority
aAd not By one but By several govern
mental authorities. which 90 not recog
mise responsibility for assured results
10 investors and are uncoordinated.
SECOND, Railroads cannot control
ana the government cannot ana Aoss
not limit the expense account.
t.Third, The present system Of regu.
laeion IL based on policy Of regulation
and correction and mot on q policy Of
helpfulness and encouragement.
4FOurth, The outstanding obligations
Of the railroads have already exceeded
the financial rule Of safety and involve
q disproportionate amount Of obhga
lions bearing nxed charges.
\ Fifth, The investor must accept &
subordinate Obligation or security with
No assurance Of q surplus Of earningi
b support it.
sixth, Other competitive lines Of In
vestment present superior attractions.
\ seventh, The railroad business Il
\ largely controlled By Political instead
Nef business considerations.
Lssk FsssssrA. Net 'esek.
eve may debate abeut what hal
caused the present condition." sAk
Mr.. Thom, "but We cannot debate absu
what the people need. TAs Presidsn
has taken the visw that We must lei
fsewara In ehis matter ana make 4
Hreah assessment Of circumstances b
~der to Zeal Aelpfuily and intelligent
~ with IL problem Abuses ar
- more prevalent b IL ElilrOaA busi
49, today than II aAy -sther bushes
AunaAsly conducted TIE great eusl
- ia nsw b whether Tie existing syI
~ e rUgulatioa gives The public n
nahle assurance ~ suAeisat pcesen
ana future railread facilities.
'srhsae whs oppose any change mus
make their appeal sa the srsuaA tia
tAs prssens systems assure the puhli
q tie continued adequacy ef trans
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