The Rathdrum tribune. (Rathdrum, Idaho) 1903-1963, 1916-12-08
NEW POLICY NEEDED
IN COVE MENT
RAILWAY CONTROL
H6IpfuInesS andEnCOuragement
Urged by Alfred P. Thorn.
CREDIT MUST Be IMPROVED


Necessary to Secure Relief From
high Cost of Living May Thus 81
Provide For by the Railroads.
Washington, Nov 2S.-A new policy
or government railroad regulation
based on constructive principles Of
helpfulness and encouragement instead
of upon principles Of repression and
punishment, WAS urged by Alfred i.
Ihom, counsel for the Railway Execu-
tVes' Advisory Committee, the first
witness on behalf of the railroads be-
fore the Newlands Joint Committee Oh
Interstate Commerce, which has insti-
tuted general inquiry into the prob.
lens Of railroad regulation.
1T is proposed by the Joint resolu-
ton OF Congress" said Mr. Thorn, ito
go iEto comprehensive study of the
whole subject Of transportation, TO
make new assessment. after % years
OF experiment, of It's history, its pres
eht conditions and its future needs.
Ihe railroads accept the view that reg
nlatlon 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
est can he conSidcrcd."
Certainty, Safety and Sufficiency.
Alr Thorn contcndcd 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 a
second consideration he said
Mr.. Thorn proposed an increase of
transportation facilities as method
of securing relief from the high cost
Of living. There have been less than
| 000 miles of new railroad construct
ed in the United States during the past
year. he said. less than in any year
since ISIS, except the period of tho
Civil War, aud vet the cost of living is
daily advancing owing 10 a shortage OF
supplies which might bc rcncdied by
securing access to new areas Of pro
du"tion.
Credit Must Be improved.
This lends to the consideration as to
whether railroad credit is as good as
the public interest requires. 1t 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" p"
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 rccog-
nize responsibility for assured results
to investors and are uncoordinatcd
"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
| helpfuneSs 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 n
subordinate obligation or security with
no assurance of a surplus of earnings
to support It.
"Slxth. Other competitive lines Of in,
vestmcnt present superior attractions.
Seventh. The railroad business is
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 lool
forward In this matter and make :
fresh assessment of circumstances II
order to deal helpfully and intelligent
TX with tie problem. Abuses arr
no more prevalent in the railroad husl
ness today than In any other business
humancly conducted. The great 4ues
, ton now is whether the existing sys
tenn of regulation gives the public r"
liable assurance of sufficient Presen
and future railroad facilities.
"Those who oppose any change mus
: make their appeal on the grou d tina
the present systems assure the publi
of the continued adequacy Of trans
portatlon facilities. If they do not, n
argument based on the desirability o