Jasper County Democrat, Volume 19, Number 69, Rensselaer, Jasper County, 25 November 1916 — RAILROADS DEMAND RELIEF FROM U. S. [ARTICLE]

RAILROADS DEMAND RELIEF FROM U. S.

Revolutionary Change in Relations Is Asked. SEE GOVERNMENT OWNERSHIP General Counsel A. P. Thom of Carriers Tells Congressional Body Federal Regulations Endanger Credit of Roads. U ashington, Nov. 24. —The railroads of the country made a flat demand for a revolutionary change in the relations of the government to the railroads. General Counsel A. P. Thom of the railroad executives’ committee told the Newlands joint congressional committee investigating interstate commerce conditions that unless the present system of railroad control is reformed, government ownership of the entire railroad systems of the countrji is inevitable. Mr. Thom opened the testimony for the railroads with an outline of the position the railroads take concerning railroad regulations. He declared the present system has almost completely precluded new railroad construction and has endangered the credit of all railroads. Says Incomes Restricted. “The growth of the country is dependent upon increased railroad facilities,” he said. “The government must aid in securing the funds necessary for expenses.” He declared the government has limited and restricted the service and incomes of the railroads without taking any steps to help them meet the Increased expenses. Counsel Thom referred to recent freight embargoes imposed by railroads and the present shortage of freight cars to prove that railroad facilities of the country are far from adequate to care for needs of the people. He declared “cost of living is daily advancing owing to a shortage of supply, which might be remedied by securing access to new areas of production,” and said less construction was done in the last year than at any time since the Civil war. He outlined conditions restricting railroad credit as follows: “Railroad revenues are not cdhtrolled by investors, but are fixed and limited by several branches of governmental authority which do not recognize responsibility for assured results to investors.

Says Roads Repressed. “The present system of regulation Is based on a policy of representation and correction and not on a policy of helpfulness and encouragement. “The <itstanding obligations of the railroads have already exceeded the financial rule of safety. “The investor must accept securities with no assurance of a surplus of earnings. “The railroad business is largely controlled by political instead of business considerations. “We may debate about what has caused the present conditions,” said Mr. Thom, “but we cannot debate about what the neople need.” Will Select Test Case. Decision as to whether the Santa Fe or the Missouri, Oklahoma & Gulf case shall be used for a test of the constitutionality of the Adamson act is to be left to representatives of the attorney general’s office now in Kansas City, it was said by railroad representatives here after a conference between G. M. Dawes, attorney for the Burlington; Frederick C. McKenney local representative of the Pennsylvania system, and Solicitor General Davis. Mr. Davis, however, insisted that there were no new developments In the case. Government officials here are Inclined to believe, it was said, that the federal attorneys now in Kansas City are in a better position to decide which case would be best for test purposes than anyone in Washington. Selection of a test case would relieve the department from defending a multitude of suits already filed, as It is understood all railroads would agree not to press individual suits dr institute new’ actions pending decision In the test case.