Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1917-04-19
new POLICY NEEDED
IN COVER N MENT
RAILWAY CONTROL
A0Ipfu|n8ss andEnCOuragement
Urged by Alfred P. Thorn.
CREDIT MUST BE IMPROVED

increase or transportation racfiitie
Necessary to Secure Relief From
High Cost of Living May Thus B.
Provided For by the Railroads.
Washington, Nov. 28.-A new policy
of government railroad regulation
based on constructive principles Of
helpfulness and encouragement instead
of upon principles of repression and
punishment, was urged by Alfred p
Thorn, counsel for the Railway Execu'
tives' Advisory Committee, the first
witness ON behalf OF the railroads be-
fore the Newlands Joint Committee on
Interstate Commerce, which has insll-
tuted a general inquiry into the prob
lens of railroad regulation.
at is proposed by the joint resolu.
ton OF Congress-" said Mr. Thorn, ito
go into a comprehensive study of the
whole subject of transportation, to
make new assessment after 20 years
OF experiment, of its history. its pres
ent conditions and its future needs
The railroads accept the view that reg
ulation Is Il permanent and enduring
part of government in America and
that the first duty Of tine 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
ests can be considered"
Certainty, Safety and Sufficienoy.
Mr.. Thorn contended 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 10 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 cost
OF living. '-rhere 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 fS4s, except the period of the
Civil War, and yet the cost of living Is
daily advancing owing to shortage of
supplies which might be remedled by
securing access to new areas of pro-
dnction.
Credit Must Be Improved.
''This leads 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"
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 bur by several govern
mental authorities. which do not recog
nike 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 IL based on q policy of regulation
and correction and not on policy of
helpfulness and announcement.
Fourth. The outstanding obligations
of the railroads have already exceeded
tho financial rule of safety and involve
/ disproportionate amount OF obliga
ions bearing fixed charges.
Fifth. The investor must accept a
subordinate obligation or security with |
10 assurance of surplus of earnings
% support IT.
sixth, Other competitive lines of in
'estment present superior attractions
Seventh. The railroad business Is
argely controlled by political instead
" business considerations.
Look Forward. Not Back.
"We may debate about what has
,aused 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
Onward In this matter and make a
'resh assessment OF circumstances In
rider to deal helpfully and intelligent.
y with the problem Abuses are
10 more prevalent In the railroad bust.
ioss today than In any other business
conducted. The great ques
ion now Is whether the existing sys
EN- Of regulation gives the public re
liable assurance OF sufficient present
Ind future railroad facilities.
Those who oppose any change must
make their appeal on the ground that
be present systems assure the public
u the continued adequacy OF trans.
'ortation facilities. If they do not, no
rgument based on the desirabIlity OF
he present dual system of regulation
vii be accepted by public Judgment
The question Of states rights is not
involved. II the regulation OF transpor
alton facilities privately owned should
all government ownership must fol
ow, and then all power of the states
'yer the railroads would disappear.
Let Us debate this question, then,
lot upon any mere theory or Jealousy
80 Il Il.t..s H.. L. - y