Baxter Springs news. [volume] (Baxter Springs, Kan.) 1882-1919, 1916-12-28
IN GOVERN NE MI
RAILWAY CONTROL
HSIpiuInsss ntEnsOuTlgsnsni
Urged BY Alfred ?. Thorn,
CREDIT MUST Be IMPROVED

Necessary 20 Secure Relief From
High cost Of Living May Thus bs
Provided For by the Railroads.
Washington. Nov. "a new policy
Of government railroad regulation.
b-sed 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:
lives Advisory Committee, the FIRST
witness on behalf of the railroads be-
fore the Newlands Joint Committee on
Interstate Commerce, which ms insti.
trted a general inquiry into the prob
lens Of railroad regulation.
at Is proposed by the joint resolu.
ton OF Congress" said Mr.. Thorn, ito
go into comprehensive study OF the
whole subject Of transportation. to
make new assessment. after 20 years
Of experiment, of fits history. its pres.
ent conditions and its future needs.
The railroads accept the view that reg
ulation is permanent and enduring
part OF government In America ana
that the first duty Of the carriers is to
the public. That duty Is to afford
reasonable facilities on reasonable
terms and at reasona BILE rates, and this
must be done before any private inter
cst3 can he considered"
Certainty, Safety and suiieisney.
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, Is in reality q
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 vet the cost OF living Il
daily advancing owing to a shortage Of
supplies which might be remedled by
securing access to new areas Of pro-
duction.
Credit Must Be Improved.
'SThis leads to the consideration as to
whether railroad credit is as good a.
the public interest requires. 1t is Inn
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 hut 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 "a 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
q dlspropOrtionate amount OF ODhga-
lions bearing fixed charges.
Fifth, The investor must accept \
obligation or security with |
no assurance Of a surplus Of earnings |
to support It.
"Slxth, Other competitive lines Of IN |
vestment present superior attractions.
Seventh, The railroad business u
largely controlled by political instead
Of business considerations.
Look Forward, Not Back.
1--WE 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 q
fresh assessment Of circumstances IN
order to deal helpfully and intelligent
" with the problem. Abuses are
no more prevalent IN the railroad busi.
ness today than In any other business
conducted. The great Ques-
ton now Is whether the existing sys-
tenn Of regulation gives the public re-
liable assurance OF suflcient present
and future railroad facilities.
Those who oppose any change must
make their appeal en- the ground that
the present systems assure the pubic
Of the continued adequacy OF trans
D0rtnti0n facilities. II they DO not, no
argument based on the desirahility Of
he present DIAL system Of regulation
viii be accepted by public judgment.
rhe question OF states rights' r. not
involved II the regulation Of transpOr-
alton facilities privately owned should
AN government Ownership must fol-
Ow. and then al power Of the states
,ver the railroads would disappear.
'.Let rs debate this question, then,
Tot upon any mere theory or Jealousy
V to the distribution Of governmental
power, but upon the largo Issue e
I