The Washington times., 1921-11-08
FARMERS URGE
STATE CONTROL
Of RAIL RATES
Counsel Assails Profits Cuaran-
tee Provision Of Transport
tation Law.

BACK TO normalcy' should apply
10 Congress as well as to business.
clifford Thorne. general counsel for
the American Farm Bureau Fedora.
ton, said when he appeared at a meet
ing OF the Senate Committee ON In
terstate Commerce and earnestly
urged two important changes In the
transportation act.
Mr.. Thorne advocated restoration OF
the full powers OF the state com
missions regulating public utilities.
and also demanded that the clause In
the act which empowers the Interstate
Commerce Commission to fix railroad
rates so as to produce liked per-
centage on their stock be stricken out
OF the measure.
Asserts Law Retards Adjustments.
Referring to section 15-a in the
transportation law, Attorney Thorne
said:
"There can be no doubt that the
existence OF this section on the statute
books has greatly retarded the re-
adjustment OF railroad rates In con-
formity with the reductions In prices
which have been effected In praq-
tically all other lines OF industry. A
proyiso in the section may warrant
reductions on a few commodities, but
many have grave doubt whether the
commission has authority 10 make
general reductions unless the rail-
roads are earning their statutory rate
of return, We should have this doubt
removed by an immediate repeal OF
this section"
Mr.. Thorne charged that the present
effort OF the railroads Is virtually 10
eliminate the State regulation OF the
nations common carriers, and added
ha nhn f.1d
our railroads II is only a question OF
time until other forms of organized
business will accomplish the same re-
suit. He contended the state govern
nents keep in close touch with the
needs OF the people and should be al
lowed to retain regulatory powers over
common carriers. A tendency toward
too much Capitalization Is equally as
dangerous as a tendency toward too
much decentralization, the speaker
said, in urging that all powers or the
States be preserved.
Guaranteed Returns Assailed.
I'VE believe that any statutory en-.
actment which attempts by fiat OF gov
ernment to authorize or require
charges in any industry OF such
character as to yield a definite rate
of return above all operating expenses
and taxes is fundamentally uneco'
nomic and unsound." Attorney Thorne
declared. There is ebb and flow III
all business. BY that provision which
Congress enacted last year the law
makers attempted to defy the forces OF
society which have been thousands of
years in developing, and the effort has
been a failure--it simply cannot be
done. You might just as well attempt
to pass a law that II shall not rain
during the next thirty days or that the
temperature shall not go below freeZ-
ing. II cannot be done.
Every industry should be per-
mitted during prosperous times TO levy
such charges upon the public that II
can lay up a surplus to tide II over
lean years and through crisis or
emergency in business. The last Of
ricial reports OF the Interstate Com
nerce Commission show that Ameri-
can railroads have a total accumulated
surplus OF more than s00,6Oo,OOO
and that they added to their surplus
1929 ,OO0. 900 last year"
Attorney Thorne said the Supreme
Court of the United States had set
precedent for the Interstate Commerce
Commission in respecting State courts
and that the American people as
whole are opposed TO the railroads
being guaranteed to a certain return
on their stock.