The Kenna record. (Kenna, Roosevelt County, N.M.) 190?-1924, 1917-01-19
IN POLICY NEEDED
IN GOVERN NE Nit
RAILWAY CONTROL
HSlpiuIROSS and Encouragement
Urged BY Alfred ?. ThOm.
CREDIT MUST Be Improves

Increase Of transportation Facilities
Necessary 70 Secure Relief From
5 High cost Of Living May Thus Be
Provided For by the Railroads.
Washington, -. ~-A new policy
OF government railroad regulation,
based ON constructive principles Of
helpfilness anH encouragement instead
Bf Upon principles 5f depression and
punishment, was urged by Alfred p.
ThOm, counsel for the Railway Execu-
tlves' Advisory Committee, the first
witness on behalf OF the railroads be-
fore the Newiands Joint Committee on
Interstate Commerce, which has insti
tuted general inquiry into the prob
lens OF railroad regulation.
ut is proposed by the joint resolu-
tion Of Congress" said Mr.. Thorn, ito
go into a comprehensive study Of the
whole subject OF transportation, to
make new assessment, after 30 years
5f experiment, of It's history, It's pres.
sbt conditions and its future netds
The railroads accept the view that reEi
ulatiOn is n permanent and enduring
part Of government in America and
Nthat the first duty of the 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 suffieisney
Mr.. Thom contended that the real In
terest of the public is in being assured
Of eertainty, safety and shfiiciency 0f
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.. Thom proposed an increase Of
transportation facilities as method
Of securing relief from the high cost
OF living. 'There have been less thaA
1000 miles of new railroad construct
ed in the United States during the past
year" he said, less than in any year
since 184S, except the period Of the
Civil War, and yet the cost Of living is
daily advancing owing to a shortage Of
supplies which might be remedied by
securing access to new areas Of pro
duction.
Credit Must Be Improved.
''This leads to the consideration as I'd
whether railroad credit Is as good AZ
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 bS
provided from credit Investors can
not be cOerced, but must be attracted ,
Among the conditions affecting rail.
road credit which deter investors hs
mentioned the following:
"Flrst, Railroad revenues are moi
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
nize responsibility for assured results
TO investors and are uncOordinateds
Second, Railroads cannot eOntro
and the government cannot and does
not limit the expense account.
"Third, The present system Of regu
Iatlon is based on a policy Of regulation
and correction and not on a policy o.
helnfulness and encouragement
eFourth. The outstanding obligation
OF the railroads have already exceeded
the financial rule Of safety and involve
a disproportionate amount of obliga
tions bearing fixed charges.
Fifth, The Investor must accept /
subordinate obligation or security witt
no assurance Of a surplus of earning
to support It.
"Sixth, Other competitive lines Of in
vestment present superior attractions.
Seventh. The rallroad business
largely controlled by political instea'
OF business considerations.
Look Forward, Not Back.
eve may debate about what ha
taDsed the present conditions" sal
Mr. Thom, 'but we cannot debate abou
what the people need. The Presider
has taken the view that we must loo
forward III this matter and make