Bluefield evening leader. [volume] (Bluefield, W. Va.) 1906-1911, 1907-04-01
BRYAN STICKS TO 1T
BELIEVES PUBLIC OWNERSHIP
OF RAILROADS ULTIMATE
SOLUTION.

Boston, April III. NJ. Whitney,
a prominent Massachusetts Demo
crat and former candidate for Lieu
tenant-Governor. tonight made public
letter he had just received from
William J. Bryan. dealing with the
railroad question The letter was in
response to one from Mr. Whitney
in which he asked
Whether, in your judgment there
is any danger that regulation will be
carried to the point OF preventing p'
reasonable return on money invested
in the railroads of the country. and
whether. in case of adoption OF Gov
eminent ownership by the nation or
by the several States. the stockho,-
ders could expect to receive a price
equal to the value OF the physical
railroad properties"
Mr.. Bryan writes. in part. as fol-
lows:
II am in favor of beth national
and State regulations, and | also be
lieve that public ownership is the III
innate solution or the railroad uues
ton. In my discussion on this sub
ject have pointed out that because
of the danger of Capitalization in'
ownership by Federal Government Of
all the lines. ! prefer a system I'm
which the Federal Government will
be confined to the necessary trunk
lines. and the ownership OF the rest
OF the lines be left to the States
This, however, is not an immediate
question; at least. am not sure that
the people are ready to consider the
question of public ownership, and
until they are ready to consider that
question the interest is centered in
regulation.
NO FEAR FOR STOCKHOLDERS
"As an advocate of regulation Of
the strictest sort, can say to you
that there is no danger whatever
that this regulation will be carried
to the point of preventing a reason
able return on money invested in the
railroads of the country. And | also
assure you that whenever public
ownership is adopted by the State.
or by the nation, the stockholders:
may expect TO receive a price at Least
equal to the value of the physical;
properties of the road; but no such
assurance ought TO be necessary. be-
cause the public has shown no dis
position to reduce railroad earnings
to a point which would deny reas
enable return
81 have contended that the nres-
ent value of the railroad should be
ascertained by the Interstate Com
merce Commission and the commits
sions of the various States in order
mat investors may know when they
are buying stock of intrinsic value
and when they are being cheated
as long as promoters are permitted
to issue stock that does not repre-
sent real value there must be dis
closure of bad railroad management
necessarily affects the value of stock
The stockholders. therefore. who de
sire 10 purchase for legitimate in.
vestment should have as much inter
est as the patrons IN reducing the
railroad business to an honest basis.
but the railroads have thus far pre-
vented the passage of law author
izing the Interstate Commerce Com
mission to fix the value of the roads
WOULD INSIST on GOOD RE
TURNS.
When the value of the roads IS
ascrtained ! am satisfied that public
sentiment will insist that the returns
shall be sufficient to pay reason.
able dividend upon the money I'm.
vested What this dividend should
be it might be difficult to fix arbi.
trarily. ] should say that any may
imum rate fixed by the people should
be a little higher than the rate fixed
by competition I'm the purchase OF
stock If for instance. stock which
nays 2 per cent dividend can be-
sold at par. a maximum dividend
ought TO be enough above that to-
provide for possible fluctuations I'm
business. n IT requires s per cent
diyident TO make stock sell at par
than the maximum dividend contem-
plated By legislation should be above
the per cent or say 6 per cent
I'm case the various States or tho
nation decide 20 enter upon puhu
ownership Of the roads there would
be no disposition to confscatc IN
property ] am satisfied that in the
purchase Of roads the public would
Doc much more apt 10 pay more than
The roads are worth than fcs