The sun., 1916-11-25
A. P. Thorn Makes Amazing
Declaration to Newlands
Commission.
JUST TO KEEP PACE
WITH U. S. COMMERCE
Spokesman for r. R. Execu-
tives Bares Evils Of U.
and State Control.

d1lU DU0tc SOllTOls
WASHINGTON. Nov. 24.-Railroads Of
~ United States are confronted with
tho necessity Of raising 8 1880. 900. 900
each year for the next ten or
twelve years to enable them to
'kesp pace with the growing needs of
commerce. This was one of the strik-
Ing facts brought out to-day before the
joint committee investigating the rail.
way situation. To this enormous
amount Of ney capital must be added
$3.50 1000. 900 more 70 refund their out.
standing debts as they mature.
These estimates werc given by Al
fred r. Thorn. who continued his testi-
mony to-day as the spokesman for the
railway executives advisory commit
tN. They were based. he said, on the
percentage Of Increase Of commerce.
Ar. Thom's estimate of tho new ~
itai required by the railroads was fol-
Nwsd by an exposition Of the evils of
the present system OF dual regulation
Federal and 6~tatc-which the railroads
csntend has prevented them from get
Ing new money for their plants from
investors and has driven away specula-
tive capital.
'Ths spirit Of adventure" he said. EN-
dueed the FIRST investment In railroad
securities. but there Is no longer . place
Tor speculative investment"
o. .. Iaesrperatien, State RisAts.
Many instances we're given Of how this
situation had interfered with railroad
financing. the New York Central's recent
~conDolidation and the New Ravens
A0A up by the Massachusetts, State
oommission being among those men,
t1snsd.
q WAS the general contention that the
new system Of Federal incorporation
would not b violative of State rights
but on the contrary would be securing
70 the States the right they acquired
under the Const itution to have their
commerce free from interference BY
their neighbors.
The testimony OF Mr.. Thorn will be
concluded probably tomorrow. but II was
animated he would DO subjected to q
sruelllng cross-examination by ex-Sen-
atoP Joseph Brlstow Of Kansas and
VtHeT ucteHocTb VI tuO StoVo CoHiiuiboiOu
which might last q week.
Ex-senator Bristow. who gave evidence
Of d~lsapproving the scheme OF the rail-
roads for naturalization Of control. said
the State commissions would not take
the stand until after the railroad man.
ayers had presented their case. but that
they would require considerable time.
Hearings Nay Ne Proionged.
n 10 admitted TO be doubtful II the
hearings can be concluded by the date
st for q report to Congress-January s
-oP evon In time to be Of use In legts-
latins at all at this session. Speculation
was rife to-day 10 to whether President
Wilson would deepa II necessary to 60
ahead and recommend LEGISLATION with
out waiting for the committee to report.
or whether he will regard the subject OF
suficient Importance TO call an extra
session OF Congress 10 pass tho legisla-
tion recommended II the committee can
not conclude it, labors.
me burden Of Mr.. Thom's address TO.
day wss the evil Of the dual regulation,
and he raw many striking Illustrations
He pointed but that II vas within the
power Of . 6take under the present sys-
TEN 10 cut th1 rates for State trafAc DO
low tne Level Of the Interstate rates and
30 . point whers they barely escape the
Constitutional prohibition Of being con-
hsoatory.
-suppess sucA states Tying along the
M Of "a inesFstAhs railroad out The
v1ol % IN dAnserouD point, rust ahovs
hAve done." said Mr.. Thorn. 'and thai
Nv osatrul Is pr osnt Of The snurs
.t~NngDUrtAton oasr3sd Uvsr ehe line. the
S0ar % per cent bsing interstate com.
maUA The burden viii fan on the et
~ Osni u that policy conducive - tn
iuoue Of capital needed 70 meet tho -
~qvtfssnsnts Of commerce? 0upposs thsss
StAta DO what some States have done
adovt mo policy OF 0taSs markets fos
Htsks product1-and make the local ratt
10 sow that the outside shipper. relytnl
upon the interstate rate. cannot com
pses. That was done in tho Shreveport
casa"
Plea for Federal Control.
n. Thorn said that all these things
In n form or another could be done
under tho system Of dual regulation
and that they would continue to harasi
and burden the m OF the country
and deprec4ate railroad investments un'
I'll the dual control VA got away from
M the Federal control substituted. The
STATE control. he intimated, Ii narrow
n eolhsh and guided by considerations
Of local political expediency.
The question before you Is whether
You will bind the commerce OF the coun
try by political conditions or shape 4
TO the needs Of the whole country. BE
tween tho Potomac n Mississippi
rivers there 10 not . State but makes
rates. and no two OF them IN which tn
commerce move Rt the Same rate
Isn't that startling?
AS indicating the diversity Of Stat
regulation and the effect of the regu!a
ton by one State upon the commerce o.
a n~e'ghboring State. let US take the cas-
OF legislation against 4 shortage. Their
IL ono State which imposes a fine OF 81
a day for failure 10 supply cars anothel
which fines the company ~ and the In
terstate Commerce Commission impose
M fine.
systen's Unfairness shown.
Suppose that under such a condition
there should DO ono car and three do
nands for it-ons in the State that I'm
poses a penalty Of s.. one from the Stat
which fines 81 and from an interstat
shipper. Does any one doubt where tina
car would 70 ~ between the three de
mands? The State with the heavies
penalty would rot IL, Hut II would tax