The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1916-12-04
new POLICY NEEDED
IN GOVERN mENT
RAILWAY CONTROL
Helpfu|nesS andEncouragemont
Urged by Alfred P. Thorn.
CREDIT MUST Be IMPROVED
Increase Of Transportation FaoiIitiss
Necessary to Secure Relief From
High Cost Of Living May Thus Be
Provided For by the Railroads.

High Cost Of Living May Thus Be
Provided For by the Railroads.
Washington, Nov. ga 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 Exeeu-
tives' Advisory Committee, the first
witness on behalf Of the railroads be-
fore the Newlands Joint Committee OF
Interstate Commerce, which has insti-
tuted a general inquiry into the prob
lens of railroad regulation.
ut is proposed by the joint resolu-
o OF Congress- said Mr.. Thorn, Ito
go into a comprehensive study of the
whole subject Of transportation. to
make q new assessment, after 20 years
Of experiment, of it's history, its pres
ent conditions and It's future needs.
The railroads accept the view that reg
ulatlon Is a permanent and enduring
part or government In America and
that the first duty of the carriers is to
the public. That duty is 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 Suffciency.
Mr.. Thorn contended that the real in
terest of the public Is In being assured
or certainty, safety and suficiency OF
transportation facilities, rather than In
rates. The first consideration of the
ties. What the cost is, is in reality a
second consideration, he said.
Mr.. Thorn proposed an increase of
transportation facilities as a method
Of securing relief from the high cost
OF living. There have been less than
1000 miles OF new railroad construct
ed In the United States 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 a shortage of
supplies which might be remedied by
secuTlnB dCtess 10 new hIehs VI pio-
duction.
Credit Must Be Improved.
This leads to the consideration as to
whether railroad credit Is as good as
possible for railroads to earn enough
to supply the necessary new facilities
from current revenue. They must be
provided from credit. Investors cam
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 n but by several govern.
mental authorities, which do not recog-
nize responsibility for assured results
% 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 a policy of regulatio 4
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
a disproportionate amount of obliga-
lions bearing fixed charges.
Fifth, The investor must accept q
subordinate obligation or security with
no assurance OF a surplus Of earnings
to support 1t.
sixth. Other competitive lines Of In.
vestment present superior attractions.
Seventh, The railroad business il
largely controlled by political instead
OF business considerations.
Look Forward, Not Back.
1--WE may debate about what hal
caused the present conditions" SAID
Mr.. Thorn, but we cannot debate about
what the people need. The Presiden'
has taken the view that we must lool
forward In this matter and make
fresh assessment Of circumstances II
order to deal helpfully and intelligent
~ with the problem. Abuses ar,
: no more prevalent In the railroad bust
ness today than In any other bushes.
humanely conducted. The great ques
ton now is whether the existing sys
TEN of regulation gives the public re
liable assurance Of sufficient presen'
and future railroad facilities.
Those who oppose any change mus
make their appeal on the ground tina
the present systems assure the publi'
of the continued adequacy OF trans
%portation facilities. II they do not. II,
argument based on the desira bility Of
the present dual system of regulation
will be accepted by. public judgment
The question Of states rights Is no
involved. II the regulation of transpor
tation facilities privately owned SHOULD
fail government ownership must fol
low, and then all power of the state'
over the railroads would disappear.
LET us debate this question. then
! not upon any mere theory or Jealousy
as to the distribution of governmental