The Big Stone Gap post. [volume] (Big Stone Gap, Wise County, Va.) 1892-1928, 1916-12-06
new POLICY NEEDED
IN GOVERN M lent
RAILWAY CONTROL
HGlpfuInass Acknowledgment
Urged by Alfred ?. Thorn.
CREDIT MUST Be IMPROVED
Increase Of Transportation Facilities
Necessary to Secure Relief From
High Cost of Living May Thus Be
Provided For by tho Railroads.

Provided For by tho Railroads.
Washington. Nov. ga new policy
OF government railroad regulation.
based on constructive principles OF
helpfulncss and encouragement instead
OF upon principles OF repression and
punishment, was urged by Alfred p.
Thorn. counsel for the Railway EIecu-
tives' Advisory Committee. the first
witness Oh behalf Of the railroads be-
Interstate Commerce. which has insti-
tutcd general inquiry into the prob
lens OF railroad regulation.
ut ~ proposed by the joint resolu-
ton OF Congress" said Mr.. Thorn, ITO
go into Il comprehensive study OF the
whole subject OF transportation. TO
make new assessment, nttcr 20 years
of experiment. OF It's history. Its pres
ent conditions and It's future needs.
The railroads accept the view TINT reg
ulation Is permanent and enduring
part OF government in America and
that the first duty OF the carriers IN to
the public. That duty is to AFFORD
reasonable facilities on reasonable
terms and at reasonable rates. and this
must he done before any private inter.
csts can be considered"
Certainty, Safety and suff,elenoy.
Mr. Thorn contended that the real in.
terest OF tho public Is In being assured
OF certainty. safety and sutficicncy 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
LOCO miles OF new railroad construct
cd in the United States during the past
year" he said. less than In any year
since 1918. except the period OF the
Civil War, aud yet the cost OF living 10
daily advancing owing 10 a shortage OF
supplies which might be remedied by
securing nccesa to new areas OF pro
duction
Credit Must 30 Improved.
This leads to the consideration IA to
whether railroad credit is as good as
the public interest requires 1t ia i'm
possible for railroads TO earn enough
to supply the necessary new facilities
from curren. revenue. They must be
provided from credit. Investors can
not be coerccd. but must be attracted"
Among the conditions affecting ran
fnn1 .,.1.i,
mentioned the following:
First Railroad revenues are not
controlled by investors, but are fixed
and limited by governmental authority
and not by ono but 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 is based on policy of regulation
and correction ana not on policy OF
helprulncss and encouragement.
Fourth. The outstanding obligation
OF the railroads have already exceeded
the financial rule OF safety and involve
disproportlonate amount OF obliga-
tons bearing fixed charges.
FIFTH. The investor must accept a
subordinate obligation or security with
no assurance OF n surplus OF earnings
10 support II.
sixth, Other competitive lines OF In
vestmcnt present superior attractions.
Seventh. The railroad business Is
largely controlled by political instead
of business considerations.
Look Forward, No. 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 a
fresh assessment OF circumstances IN
order 10 deal helrfully and Intelligent
iy with the problem Abuses are
no more prevalent in the railroad bust
ness today than in any other business
humnnely conducted The great cues.
ton now Is whether the existing sys.
tenn OF regulation gives the public re-.
liable assurance OF sufficient present
and future railroad facilities.
Those who oppose any change must
make their appeal on the ground tia I
the present systems assure the public
OF the continued adequacy OF trans.
portailon facilities. II they do not no
argument based on the desirahility OF
tho present dual system OF resuln ton
lrrrt1n 10