Show NEW POLICY NEEDED I I I IN RAilROAD RAILROAD CONTROL I Increase of Transportation Facilities Necessary to Secure Relief From High Cost of Living says sass Thorn ThornA A new policy of government railroad railroad railroad rail rail- road regulation based on constructive tive Uve principles of oC helpfulness and encouragement encouragement en en- cour gement instead of oC upon principles pIes ples of oC repression and punishment was urged by Alfred P. P Thom Thorn counsel counsel coun coun- sel for Cor the Railway Executives' Executives Advisory Advisory Advisory Ad Ad- Committe the first witness on behalf of the the r railroads before the New Newlands lands Joint Committee on Interstate Interstate Inter Inter- state Commerce which has instituted a general Inquiry Inquiry into the problems of railroad regulation It Is s proposed by the Joint resolution resolution resolution tion of Congress said Mr Thom Thorn to togo togo go 10 Into a comprehensive study of the whole hole subject of transportation to tomake tomake tomake make a new assessment after 2 20 29 years year of experiment of ot its history its Hs present present pres pres- ent eat conditions and its future needs The railroads accept the view that reg reg- regulation IB Is a permanent and enduring part of ot government in America and that the first tint duty of ot 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 Interests Interests Inter inter- ests eats can be considered Certainty Safety and Sufficiency Mr Thom Thorn contended that the tho real Interest InI Interest In In- I terest of ot the public is in being assured of ef certainty safety and sufficiency of ot transportation facUlties facilities rather than In rates The first consideration of the public is 18 to obtain transportation ties What the cost 1 te la is la in reality a second consideration he said Mr Thom Thorn proposed an increase e of ot transportation facilities as a method of securing relief from the high cost of living There have haTe been less than 1000 LOGO miles of ot new railroad constructed construct construct- ed in the United States during the past year he said less than in any year since Ince 1848 except the period of ot the Civil War and yet the cost of ot living Is 19 dally daily advancing owing to a shortage of ot supplies which might be remedied by byI I teeming access to new areas of ot pro pro- Credit Must Mud Be e. Improved This leads to the consideration as to whether railroad credit is as good as the public Interest requires It is Impossible impossible im Im- possible for railroads to earn enough to supply the necessary new facilities from current revenue They must be provided from credit Investors cannot cannot can enn- not DOt be coerced but must be attracted J k Among the conditions affecting railroad rail railroad rail rail- f road credit which deter Investors he be henz meI mentioned ed the the following ors First Railroad revenue are not controlled b by Investors but are aNI flied fixed and limited by governmental authority and not b by one ono but by several enral governmental governmental govern govern- mental authorities which bleh do not recognise recognize nize nise responsibility for tor assured results to investors and are uncoordinated Second Railroads cannot control and the government cannot and does not limit the expense e account Third The present system of ot re regulation regu- regu lotion lation Is la ba based cd on a policy of ot re regulation and aDd correction and not on a policy of helpfulness and encouragement Fourth The outstanding obligations of ot the railroads s have already exceeded the financial rule rile of ot safety an and Involve a disproportionate amount of ot obligations obligations obliga obliga- bearing fixed d charges chargee Fifth The investor must accept n a subordinate obligation or security with no assurance of ot a surplus of ot earnings to support It ft Sixth Other competitive line lines of investment in vestment resent present superior attractions Seventh The railroad business Is 13 largely controlled by political instead of ot business considerations Look Forward Not Back flack We may debate debato about what has bas caused the present conditions said Mr Thom Thorn but we cannot debate about what the people need The President has taken the view that we must look loot forward In this matter and make a afresh afresh fresh tresh assessment of ot circumstances circumstances' In hi order to deal helpfully and intelligently intelligent Intelligent- ly with the problem Abuses are arc areno areno no more prevalent in the railroad business business busi busi- ness today than in any other business hu humanely anely conduct J. J The great gnat g at question question question ques ques- tion now Is whether the existing tern of regulation gives the public reliable reliable re re- liable assurance of sufficient present and future futuro railroad facilities Those who oppose any change must make their appeal on the ground that the present systems assure the public of oC the continued adequacy of ot transportation trans trans- facilities If It they do not riot no argument based on the desirability of the present dual system of ot regulation will be accepted by public Judgment Th The question of ot f states tates' rights' rights is not Involved If It the regulation of ot transportation transportation transportation tation facilities facUlties privately owned should fall fail government ownership must follow follow tollow fol tol- fol- fol low and then all power of ot the states over the railroads would disappear Let us debate this question then not upon any mere theory or Jealousy as to the distribution of C governmental power but upon the large issue of what the public interest requires In respect of ot the assurance of adequate transportation service |