The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1907-04-18
BRYAN ON THE RAILROAD STUTION +!
Bryan SdlS he is Favor Of Both National and State Regulation
but Comment Ownership in Inevitable

puiSuasc VI roaus the puDllc would
De much more apt TO pay more thar
the roads are worth than less. There
Is, therefore, no reason why n per.
son having money to invest In rail,
roads should not be willing to IN vesl
upon an honest basis at this time,
Tor no future legislation would deny
him a fair return. But there Is an.
other reason why investors need not
FEAR. They are not only protected by
the sense OF justice In the people
themselves, but they are still further
protected by the courts which will
not permit legislation that is confs-
catory. Several OF the rail,oad presi
dents have recently complained OF
state legislation and charged that the
legislation would not permit the rail.
roads TO earn reasonable profit.
The Investing public has been un.
necessarily alarmed by these state
ments. The railroad presidents, In.
stead OF attempting to terrorize the
legislature, should have announced
to investors that II the legislators at.
tempted to cut down railroad earn.
ings below reasonable point, the
courts would restrain them. No rail.
road regulation will be sustained by
the courts that does injustice to the
owners OF the railroad, and II public
ownership Is entered upon, the gov.
ernment cannot take the roads with.
out paying what the roads are worth.
This is judicial question. In order
to obtain railroad now In existence.
the government would either have &c
buy 1t or condemn II. II II bought
1t would have TO buy upon the price
agreed upon. Ii II condemned 1t, II
would have to pay the price fixed 10y
the court. IL will be seen, therefore,
that all this cry about conilscation Is
without foundation.
] think can speak for those who
believe in regulation and / know that
there Is not and never has been dan
ger OF Injustice to the owners OF the
railroad. and II can speak for those
who believe that the ultimate solu-
tion OF the question Is to be found In
public ownership, l can say that
there is no disposition to contscate
railroad property even II the courts
would permit IL.
In arguing the Nebraska maximum
rate case before the supreme court OF
the United States, / took the posi-
tion that the value OF the road TO be
recognized In the liking Of rates
should be the cost OF reproduction.
You will find my brief quoted IN
full In the decision. While the court
did not clearly lay down rule on
that subject, am still OF the opin.
ion that there is no just basis for
measuring the value OF railroads OK.
cept the cost OF reproduction, that
being the basis upon which all other
industries must rest. A farmers
land is worth not what IL may ha, q
cost him, or what he may have spent
upon 1t, but what an adjoining farm
can he bought for In the open mar.
ket. A merchants stock is not
worth what IL cost him, but what II
can he replaced for at present prices.
The rules that apply to the mass Of
mankind aud TO ordinary business In
the liking of values ought to apply to
the railroads, for when we allow one
class to exempt itself from the gener.
al rule IL not only avoids contingen.
cies which the rest must meet, but
by the avoiding OF these contlngen.
Giles IL throws an additional burden
upon all other forms OF industries.
Pardon this lengthy reply, but !
am very glad TO answer your ques-
lions and to tell you that honest In.
vestors in honestly conducted rail.
roads have nothing TO fear. The
sooner the honestly conducted rail-.
roads separate themselves from the
dishonesty conducted ones, the safer
they will be, and the sooner the hon.
est investor separates himself from,
the SPECTATOR the safer he will he.
Honest Accommodations and honest In.
vestors have too long borne the obi.
um that predatory wealth should
bear alone. A line should he drawn
among railioad managers and invest.
ors 10 railroad property, between
those, on the one band, who do leg.
itimate business and supply a public
need, and those, on the other hand,
who have the instincts OF bird Of
prey and make victims OF all who are
helpless and defenseless. Yours
truly,
NJ A Hrvan