Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1917-01-12
NEW POLICY NEEDED
In GOVERN Mt
RAILWAY CONTROL
HeIptulneSs Acknowledgment
Urged by Alfred P Thorn.
CREDIT MUST Be- IMPROVED

Increase Of Transportation Facilities
Necessary to Secure Relief From
High Cost Of Living May Thus ee
Provided For by the Railroads.
Washington, Nov. GA new policy
Of government railroad regulation.
based on constructive principles of
h%elpfulness 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 insti-
tuted a general inquiry into the prob
lens Of railroad regulation.
'1t is proposed by the joint resolu-
ton Of Congress-" said Mr.. Thorn, ito
go into 2 comprehensive study Of the
whole subject Of transportation. to
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
u!ation is q permanent and enduring
part Of government in America ara
that 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 car be considered"
Certainty, Safety ard suHiciency.
Mr.. Thorn contended that the real in.
terest Of the public is in being assured
of certainty, safety and sufhcieney 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 .
second consideration, he said.
Mr.. Thorn proposed an increase of
transportation facilities as q method
of securing relief from the high cost
of living. There have been less than
LOCO 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 a shortage of
securing access to new areas of pro-
duction.
Credit Must Be Improved.
This leads to the consideration as to
l u,hnfhnr ~ o;1roo6 o,.oli{ ic n &c GOOD no
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 cam
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 n 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 a policy of regulation
and correction and not on a policy of
helpfulness and encouragement.
Fourth. The outstanding obligations
Of the railroads have already exceeded
the financial rule Of safety and involve
a disproportionate amount of obliga-
lions bearing fixed charges.
Fifth, The investor must accept a
subordinate obligation or security with
no assurance Of a surplus Of earnings
to support 1t.
Sixth, Other competitive lines Of In
Vestment present superior attractions.
Seventh, The railroad business Is
largely controlled by political instead
Of business considerations.
Lock Forward, Ne. Back.
I'VE nay debate about what has
caused the present conditions" said
Mr.. Thorn, "but we cannot debate about
what the people need. The Pres!den1
has taken the view that we must look
forward n this matter and make 8
fresh assessment Of circumstances II
order to deal helpfully and intelligent
" with the problem. Abuses are
no more prevalent In the railroad bust
ness today than IN any other business
humanely conducted. The great ques
ton now Is whether the existing sys
tenn Of regulation gives the public re
dable assurance OF sufficient present