The Brattleboro reformer. (Brattleboro, Vt.) 1907-1912, 1907-04-05
BRYAN ON RAILROADS.
No Danger, He Thinks, That Regula-
ton VIII Be Carried Too Far.

n. NJ. Whitney, prominent Massachu'
setts democrat, and former candidate iof
lieutenant governor, has made public a
letter he has Just received IRON W. j,
BRYAN. dealing with the railroad question,
The letter was IN response 10 one from
Mr.. Whitney, in which he asked;-
whether IN your Judgment there is
any danger that regulation will be carried
10 the point of preventing a reasonable
return on money invested in the railroads
of the country and whether IN case oil
adoption OF government ownership by the
nation or by the several states the stock
holders could expect to receive price
equal 10 the value of the physical railroad
properties
Mr., BRYAN writes in part as follows:-.
II am in favor of both national and
state regulations and ! also believe that
public ownership is the ultimate solution
of the railroad question. In my DISCUS
sions on this subject ! have pointed out
that because of the danger OF centaliza'
ton in ownership by the federal govern
mcnt OF all the lines, ! prefer system IN
which the federal government viii be con
fined to the necessary trunk lines, ana the
ownership of the rest of the lines be left
10 the states. This, however, is not al
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 the question
the interest is ccntcred in regulation.
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
reasonable return on money invested III
the railroads Of the country. And ! can
also assure you that whenever publc own
ership is adopted 10y the states or bv the
nation. the stockholders may expect TO ne,
ceive a price at least equal to the value oil
the physical properties OF the road bu'
no such assurance ought TO be necessary
because the public has shown no DISPOSE
ton TO reduce railroad earnings TO point
which would deny a reasonable return
II have contended that the present. val
ne of the railroad should be ascertalned 10y
the interstate commerce commission ana
the committees of the various states, IN
order that investors may know when they
are buying stock OF intrinsic value and
when they are lring cheated, As long as
promoters are permitted to issue stock
that does not represent real value there
must he iluctuation in the stock market,
for every disclosure of bad railroad man.
agement necessarily affects the value OF
stock. The stockholders, therefore. who
desire 10 bUlthdNc lbi itElliihdh' ih'N,,
ment. should have as much interest as the
patrons in reducing the railroad business
to an honest basis. hut the railroads have
thus far prevented the passage OF a law
authorizing the interstate commerce com
mission to fix the value OF the roads.
"When the value of the roads is ascer'
tanned | am satisfied that public sentl'
ment will insist that the returns shall be,
sufficient to pay a reasonable dividend
upon the money invested. What this diyl-
dend should be it might be difficult TO ilX
arbitrarily. | should say that any maxi
mum rate fixed by the people should be
little higher than the rate fixed by com
petition in the purchase Of stock.
I'm case the various states or the station
decide to enter upon public ownership of
the roads. there would be no disposition
to confiscatc the property. 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.
II think ! can speak for those who be-
leve in regulation And ! know that
there is not and never has been danger %
injury to the owners of the railroads, and
if | can speak for those who believe that
the ultimate solution of the railroad is to
be found in public ownership, | can say
there is no disposition to contiscate rail
road property even if the courts would
permit it.