The Era-leader. [volume] (Franklinton, La.) 1910-current, 1916-12-14
NEW POLICY NEEDED
IN COVER NE Mt
RAILWAY CONTROL
ne| ptu|ness andEneouTagemen1
Urged by Alfred ?. 1honl'
CREDIT MUST Be IMPROVED

,,or.ase Of Transportation Fae'''t'e'
Necessary to Secure Re''e' rro"
Mich Cost Of Living May Thus 90
Provided For by the Railroads.
washington, Nov. 2s-A new policy
Of government railroad regulat'on;
hasod on constructive principles 0.
helpfulness and encouragement lnsteas
Of upon principles OF repression anu
punishment, was urged by Alfred r
Thom counsel for the Railway Execa.
t,ves' Advisory Committee the hrs'
witness on behalf of the railroads pe'
rora the Nevlands Joint Committee On
Interstate Commerce, which has 1nsti
tuted general inquiry into the prop
lens Of railroad regulation.
1T is proposed by the JOINT reso.u,
zion Of congress-" said Mr.. Thorn, 10
90 into a comprehensive study OF the
whole subject Of Transportation "|
make new assessment, after 20 years
NJ experiment, of its history, its pres
ont conditions and its future neeus'
Tho railroads accept the view that reg
ulat,on is a permanent and enduring
r mart Of government in America ana
that the first duty Of the carriers IS 10
the public. That duty Is to anoru
n reasonable facilities on reasonable
# terms and at reasonable rates, ana this
, must be done before any private inter
ests can be considered"
70 Certainty, Safety and sufficieney'
Mr., Thorn contended that the real III
Of terest Of the public is in being assured
!. Of certainty, safety and sufficiency o
TRANSFORMATION facilities, rather than II
rates. The first consideration OF tn
D. nublic IS to obtain transportation 1acll
n. ties What the cost is, is In reality
-. second consideration, he said.
~ Mr. Thorn proposed an increase
1e TRANSFORMATION facilities as metho
ity Of securing relief from the high COZ
~ ~ living. There have been less tina
" 600 miles of new railroad construc
ue od IN the United States during the pa
ie. vear" he said, "less than in any 5e'
ed aimee 1s4s, except the period o. u
49,, Civil War, and yet the cost OF living
OH daily advancing owing to shortage
to supplies which might be remeolea
~ s S1arr,no access to new areas OF p1
duction.
cr.d;t Must 30 Improved.
ro' ~Th,s leads to the consideration a.
Bile vbether railroad credit is as good
the public interest requires. 1t IS
nossible for railroads to earn enou
to supply the necessary new 1acl1'
No. from current revenue. They must
Io1 provided from credit, Investors c
nel' not he coerced, but must be attracte
ate Among the conditions affecting r
Co.. road credit which deter investors
mentioned the following:
"First, Railroad revenues are
controlled by investors, but are Il
oil and limited by governmental autho
=. and not by one but by several gov
snip mental authorities, which do not re
any, nize responsibility for assured res
4 T TO investors and are uncoordinated
"Second, Railroads cannot cor
1tual and the government cannot and
Kerr not limit the expense account
ona "Third, The present system OF
> ,at,on ,s based on q policy Of reguls
Gem and correction and not on a polio
helpfulness and encouragement.
~ "Fourth, The outstanding obliga
va Of the railroads have already exec
the financial rule Of safety and IN
a disproportionate amount OF OF
tons bearing fixed charges.
n "Fifth, The investor must acc'
y subordinate obligation or security
k1 no assurance of surplus Of ear
to support it.
. "sixth, Other competitive lines
yestment present superior attract
"seventh, The railroad buslne
largely controlled by political Ii
:, of business considerations.
Look Forward, Not Back.
..r1 1--WE may debate about VIVA
AA caused the present conditions,
Mr., Thorn, "but we cannot debate
what the people need. The Pre-
has taken The view that we mus
forward in this matter ard n
fresh assessment Of circumstan
order to deal helpfully and inte
a " with the problem. Abus'
" no more prevalent in the railroa
~ ness today than in any other b
~ humanely conducted. The grea
ton now is whether the exist
D TEN of regulation gives the pu
h liable assurance Of sufficient
y and future railroad facilities.
'Those who oppose any chang
make their appeal on the grou
.na OK the present systems assure the
"n0 49, of the continued adequacy OF
portation facilities. If they do
argument based on the desirat
the present dual system Of re-
PaSsage will be accepted by public ju
w. A'A The question Of states rights
,nvolved IF the regulation of +