Putnam patriot. [volume] (Putnam, Conn.) 1872-1962, 1916-12-01
NEW POLICY NEEDED
IN GOVERNMENT
RAILWAY CONTROL
RslIfulness and encouragement
Urged by kltreu P. Tn0m.
CREDIT MUST Be IMPROVED
Increase Of Transportation Facilities
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
" government railroad regulation,
based on constructive principles Of
helpfulness and encouragement instead
Of upon principles Of repression and
punishment. was urged by Alfred r.
Thorn, counsel for the Railway Exeeu-
tiyes Advisory Committee. the FIRST
witness on behalf of the railroads be-
fore the Newlands Joint COMMITTEES on
Interstate Commerce. which las insti-
tuted general inquiry into the prob
lens of railroad regulation
1T rs proposed by the joint reeoln-
ton OF Congress- said Mr. Thorn, TO
go into q comprehensive study Of the
whole subject OF transportation. to
make new assessment. after ~ years
OF experiment. of lis history. Its pres
ent conditions aud It's future needs
The railroads scceTt the view that reg
nlation II permanent and enduring
part OF government In America and
the public. That duty Is to afYosi
reasonable facilities ga reaseaa BILE
terms and ut req soma bic rates and this
must lie done before say private inter
csts can be considered
Certainty, Safety and Sus6oisney.
Mr.. ThSm contended that the real In.
teiest Of the public is In being sxasred
Of certainty. ~ fetv and sutfacieacy OF
transportation facilities. rather than Ia
rates, The first considersti ton Of the
public IL to obtais transports tioa fscili-
ties. What the cost Is. is In reality .
second consideration he said
Mr. Thorn proposed an increase Of
transportation facilities as method
II securing relief from the high cost
" living '-fhere have been less than
l000 miles Of new railroad construct
II In the United States during the past
wear" he said. less than in any year
since 1919. except the period IT the
Civil War. and get the cost OF living Is
Tally advancing owing to a shortage of
supplies which might be renedied by
securing access to new areas OF pro.
duction.
Credit Must q, improved.
This Leafs to the consideration az to
whether railroad credit is as good as
he public interest requires 1t il I'm
possible for railroads to earn enough
10 supply the necessary new facilities
from current revenue They must be
provided from credit Investors can
rot be coerced. but must be attracted"
Among the conditions affecting rail
road credit which deter investors he
neas .oned the following
First. Railroad revenues are not
'ontre'e3 - Investors, hut are fixed
md lia by governmental authority
md not hr one hut by several govern
mental auth,.ities. which do not recog
iize responsibility for assured results
q investors ana are uncoordnated
sc, end. Railroads cannot control
md the government cannot and does
,ot liWit the expense sc.ount.
Third. The present system OF regu
alton is based Oh a policy of regulation
nd eorref lion and not on a policy of
'elpfulncss and cneoaraeement.
Fourth Tho outstanding obligations
# the railroads have already exceeded
he financial rule Of safety and Involve
/ diSproportipnate amount of obliga
ions bearing fixed charges
Firth. The investor must accept a
subordinate obligation or security with
no assurance of surplus Of earnings
60 support It.
sixth, Other competitive lines Of in
vestment present superior attractions.
seventh The railroad business is
largely controlled by political instead
II business considerations.
Look Forward. Not Back.
We may debate about what has
anscd the present conditions" said
tr Thorn. hut we cannot debate about
What the people need. The President
las taken the view that we must look
Onward in this matter and make a
fresh assessment of circumstances in
'rler TO deaf helpfully and intelligent
v with the problem. Abuses are
no mere prevalent in the railroad bust
leSs today than in any other business
humanelv e@Iductel The great aues-
ion now is whether the existing svs
iem OF regulation gives the public re
liable assurance OF sufficient present
nd future railroaa facilities
These whe oppose any change must
make their appeal on the ground that
he present systems assure the public
the continued adequacy Of trans
oriatinn facilities II they do not. no
sumeu; hased on the desirability of
7e present dual system of regulation
Ill ae "a ea;ea hy pnhlic iud4-lent.
'he question ct states rights is not
pvo Veh If lie egnlation of transpor-
alton faciii,ie, privately owned should
ali government ownership must fol
ow, and then all power of the states
yer The railroads would disappear.
let MS debate this question. then.
not upon any mere theory or jealousy
is 10 the distribution of governmental
power, hut upon the large issue OF
what the public interest requires in
respect Of the assurance OF adequate
transportation service"