Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-03-30
BRYAN STICKS TO IT
BELIEVES IN PUBLIC OWNERSHIP
OF RAILROADS.

BOSTON March 3O.-H. NJ Whitney,
prominent Massachusetts democrat and
former candidate for lieutenant governor,
last night made public a letter he had just
received from William ]. 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 a reasonable re-
turn on money invested in the railroads of
the country and whether, in case Of adop
ton of government ownership by the ma
ton or by the several states, the stock
holders could expect to receive price
equal to the value of the physical railroad
properties
Mr.. Bryan writes. in part. as follows:
Il am in favor of both national and state
regulations. and l also believe that public
railroad question. In my discussion on this
subject 1 have pointed out that because Of
the danger of Capitalization in ownership
by the federal government of all the lines.
l prefer a system in which the federal gov
eminent 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 l am not sure that the people are
ready to consider the question of public
ownership. and until they are ready to con-
slider that question the interest Is centered
in regulation.
No Fear for Stockholders.
"As an advocate of regulation of the
strctest sort, I can say to you that there is
no danger whatever that this regulation
will be carried to the point of preventing a
reasonable return on money invested in
the railroads of the country, And 1 also
assure you that whenever public ownership
is adopted by the states or by the nation,
the stockholders may expect to receive a
price at least equal to the value Of the ply
steal properties of the road but no such as
surance ought to be necessary, because the
public has shown no disposition to reduce
railroad earnings to point which would
deny a reasonable return.
Il have commended that the present value
of the railroad should be ascertained by the
interstate commerce commission and the
commissions of the various states in order
that investors may know when they are
buying stock of intrinsic value and when
they are being cheated. AS long as promot-
ers are permitted to issue stock that does
not represent real value there must be fiuc-
tuation in the stock market, for every dis
closure of bad railroad management neces-
sarily affects the value of stock The stock
holders, therefore, who desire to purchase
for legitimate investment should have as
much interest as the patrons in reducing
the railroad business to an honest basis but
the railroads have thus far prevented the
commerce commission to fix the value of
the roads
Would Insist on Good Returns.
when the value of the roads is ascer-
tanned I am satisfied that public sentiment
will insist that the returns shall be suffi-
cient to pay a reasonable dividend upon
the money invested. What this dividend
should be it might be difficult to fix arbi-
trarily. l should say that any maximum
rate fixed by the people should be little
higher than the rate fixed by competition
in the purchase of stock. If, for instance,
stock which pays per cent dividend can
be sold at par a maximum dividend ought
TO be enough above that to provide for pos
sible fluctuations In business. If it requires
per cent dividend to make stock sell at
par, then the maximum dividend contem-
plated by Legislation should be above the
per cent. or. say, per cent.
In case the various states or the ma
ton decide to enter upon public ownership
OF the roads, there would be no disposition
to confiscate the property. 1 am satisfied
that In the purchase of roads the pubic
would be much more apt to pay more than
the roads are worth than less"