The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-14
THOM SEES NEW ERA
IN TRANSPORTATION
Railway Law An Economic
Triumph Of Popular
Government
CARRIERS NOWCoNFIDENT
Otto Kahn Urges Repeal or
Modification of Excess
Profits Tax.
specia, pesputcn to THE Hr,1,.n.

BOSTON, Oct 13.-With the enactment
of the transportation act of 1920 a new
constructive transportation policy calling
for the preservation "in full vigor" Of
both rail and water transportation has
row begun In earnest, Alfred p. Thorn.
Railway Executives, declared In a speech
here tonight at a dinner Of the Massa-
chusetts State Chamber of Commerce.
He praised the act as marking new
era In our legislative history and con-
trasted 1t to the economic tragedy Of
the old punitive and restrictive system
CT governmental regulation. Declaring
the measure carries out a new conception
of the relationship transportation bears
to the public welfare, he characterized
1t as an Economic triumph Of popular
government" and urged that adequate
opportunity be allowed for testing its
efficacy.
AS general counsel for the association
Mr.. Thorn is head of the legal depart
nent of an organization In which all
class l. as well as virtually all short
line railroads throughout the country
are represented
New Conceptions OF Duty.
Men may still debate" said Mr..
Thorn. "as to the adequacy Of the legts-
lation which has been adopted, but there
can be no reasonable difference OF
opinion as to the soundness or value to
the nation Of the new conception that
fas been accepted of the responsibility
of government to the subjects which IT
undertakes to regulate and Of the recog-
ition of the fact that the credit or
these carriers, on which their ability to
perform their essential public service de-
pends Is matter Of profound and vital
public concern, and must. out of regard
for the public welfare. be dealt with on
reasonable and sound business principles.
It remains now to give the new system
a fair trial
aided by the new conception Of the
relationship Of government to their own
interests and responsibilities, the car
riers are facing the future with courage
and with confidence. Notwithstanding
the difficulties, they are already perform
ng with their impaired and inadequate
facilities better and larger transporta-
ton service than ever has been furnished
under normal conditions to the American
public. BY voluntary action they are
establishing the degree of cooperation
with each other and of coordination OF
their facilities needed in the public In
terest and are manifesting spirit.
uurpose and an efficiency In keeping with
the new trust which has been imposed
upon them"
Inadequate Service Costly.
Enactment Of the transportation act,
which is founded on new and larger
view of the relationship of government
TO the Observation-Disclosures of government
which 1t undertakes to regulate MI.
Thorn said, resulted from a realization
by the public of the sins OF the past
and that transportation is a public ana
not private question. The public also
has come to realize, he added. that the
most expensive and most costly service
to the public Is inadequate service.
''The abandonment of the old and mis-
taken view" Mr. Thorn said. that the
responsibility of government, when II
undertakes to regulate the business OF
transportation. is fully performed when
It Furnishes it's misdeeds and restricts It's
activities and opportunities, and the
adoption of the new conception that the
Governments responsibility In regula-
ton must extend to and embrace proper
announcement and protection makes
new era in our legislative history and
rises to the dignity of an economic tri-
urnph of popular government. 1t fur-
nishes new assurance and gives iresh
courage and hope to those who believe
In the good sense and the spirit OF WIS
dom and craftsmanship which reside In
the masses of the people and which VIII
ultimately manifest itself In the system
of laws evolved out of public opinion"
Regarding the carriers efforts to meet
the present transportation problems Mr..
Thorn said:
.There have been, there still are and
there inevitably will be failures to meet
fully the needs Of the people, but 1t Is
fair to say that these failures Will not
be due to lack Of effort and that the
public may rest assured that recog-
nized failure or imperfection will result
In renewed and conscientious effort 10
furnish better and more adequate pubic
service. The effect will be to make each
failure O point of departure for a new
success, and the Improvement we are
justified in hoping and In thinking will
be continuous and progressive"
Kahn on supertaxation.
Savage supertaxation" was attacked
Nv Otto II. Kahn as responsible for many
evils In this country.
T.
rroflt tax should be abolished or essen
TALLY modified and some other method
eevisedl to tax corporate profits.
Nothing tends more to create a sullen
animosity against fiscal measures, moth
ing is more apt to cause a man to feel
justified in his own conscience to give
himself the benefit of any doubt or tech
meal loophole, than to be compelled, in
addition to paying heavy taxes. to sit
down and grapple with complex tax
forms and intricate schedules" he de-
clared.
At the same time that the excess profit
tax Is dealt with the extreme scale OF
surfaces, which eventually defeats its
own purpose. should be revised down.
ward. Mr., Kahn said.
THE abolition or revision OF our gem
orally condemned excess proft tax would
not accomplish the purpose In view un-
less at the same time the extreme rates
OF individual surfaces are reduced" he
declared.
only Partial Relief.
To eliminate the excess profit tax
vvitho,it NJ the same time revising the