Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1917-02-16
he!pfuIn0ss and encouragement
Urged by Alfred P. Thorn.
CREDIT MUST Be- IMPROVED
Increase o. Transportation Facilities
Necessary TO Secure Relief From
High Cost Of Living May Thus Be
Provided For by the Railroads.

or government railroad regulation
b sed on constructive principles Of
helpfulness and encouragement instead
OF upon principles OF repression and
punishment. was urged by Alfred +
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 has insti
tLted general inquiry into the prob
lens of railroad regulation.
ut is proposed by the joint resolu
ton OF Congress-" said Mr.. Thorn, "tu
90 into comprehensive study OF the
whole subject Of transportation. t.
make a new assessment. after % years
Of experiment. of its history. its pres
ent conditions and its future needs
The railroads accept the view that reg
ulation Is permanent and enduring
part OF governm ut in America and
that the first duty Of the carriers is t.
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.
est3 can he considered
Certainty, Safety and sufFieieney.
Mr.. Thorn contended that the real in
terest Of tie 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 a method
Of securing relief from the high cos,
Of livin,, 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 yet the cost Of living is
daily advancing owing to shortage Of
supplies watch might be remedied by
securing access to new areas Of pro
ducti0n
Credit Must Bs Improved.
'.This leads to the consideration as to
whether railroad credit is as good as
the public interest requires. It 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 c0erced, but must be attracted"
Among the conditions affecting rail.
| snh ~.
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 recog-
nise 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 II based on policy Of regulation
and correction and not on policy OF
helpfulness and encouragement.
Fourth. The outstanding obligation>
Of. the railroads have already exceeded
the financial rule Of safety and involve
q disproportiOnate amount of Obliga.
lions bearing fixed charges.
Fifth, The investor must accept .
subordinate obligation or security with
no assurance Of q surplus Of earnings
to support 1t.
sixth. Other competitive lines Of in
vestment present superior attractions.
Seventh. The railroad business r.
largely controlled by political instead
Of business considerations.
Look Forward, Not Back.
1--WE may debate about what ha,
caused the present conditions" said
l'r. Thorn. "but we cannot debate about
what the people need. The President
has taken the view that we must looh
forward in this matter and make 4
fresh assessment Of circumstances II
order to deal helpfully and intelligent
~ with the problem. Abuses arr
NO more prevalent in the railroad bust
ness today than in any other bushes.
humanely conducted. The great ques
ton now Is whether the existing sys
tenn of regulation gives the public re
liable assurance Of sufficient presen
and future railroad facilities.
''Those who oppose any change mus
make their appeal On the ground tina
the present systems assure the publi'
Of the continued adequacy Of trans
portation facilities. If they do not, n.
argument based on the desirability o.
the present dual system Of regulation
will be accepted by public judgment
The question of states rights Ia no
involved. If the regulation of transpor
tation facilities privately owned shoult
! fail government ownership must fol
| low, and then all power Of the states
! over the railroads would disappear.
| "Let US debate this question, then
not upon any mere theory or jealous,
| a to the distribution of governmental
power. but upon the large issue o
what the public interest requires II
respect Of the assurance Of adeQuat
transportation service"