Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-03-30
PUBLIC OWNERSHIP
To Come for Railroads--TilI Then
Strict Regulations, Says Bryan.


Boston, March 29.-H. NJ. Whitney,
prominent Massachusetts Democrat
and former candidate for lieutenant
governor tonight made public letter
he has just received from w. ]. 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 car
RED To the point of preventing a rea-
sonable return on money invested i'm
the railroads of the country and
whether in case of adoption of gov
eminent ownership by the national
government or by the several states
the stockholders could expect to re-
ceiVe 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 1 also believe
| that public ownership is the ultimate
solution of the railroad question. In my
discussions on this subject, ! have
pointed out that because of the danger
of Capitalization of ownership by the
| federal gOvernrntnt of all the lines l
prefer a system in which the federal
government will be confined to the nee
eSsary trunk lines and the ownership
| of the rest of the lines be left to the
states. This, however, is not an immedi-
ate question, at least l am not sure that
the people are ready to consider the
question of public ownership, and until
they are ready 10 consider that ques-
ton the interest is conferred in reGula-
ton.
'As an advocate of regulation of the
strictest sort, l can say to you that
there is no danger that this regulation
will be carried to the point of prevent
| ing a reasonable return on money in
vested in the railroads Of the country.
And I can also assure you that when
| ever 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 physical prop
critics of the roads, but no such assur-
ance ought to be nc ccssary, because the
public has shown no disposition to re
duce railroad earnings to point which
would deny reasonable return.
Il have contended that the present
value of the railroads should be ascer-
| tanned by the Interstate Commerce
| Commission and the commissioners of
| the various states in order that inveS-
| tors may know when they are buying
! stock Of value and when they are being
| cheated AS long as promoters are per
mitted to issue stock that does not
| represent real value there must he fiuc-
| tuation in the stock market, for every
| disclosure of bad railroad management
necessarily affects the value of stocks.
| The stockholders, therefore, who desire
| to purchase for legitimate investment
! should have as much interest as the
! patrons in reducing the railroad bust
! ness to an honest basis, but the rail-
roads have thus Tar prevented the pas
/ sage Of a law authorizing the Interstate
! Commerce Commission to fix the value
(, of the railroads.
when the value Of the roads is as
| certained. / am satisfied that the pub
| lie sentiment will insist that the returns
! shall be sufficient to pay reasonable
! dividend upon the money invested.
| What this dividend should be, it might
he difficult to fix arbitrarily. | should
say that any maximum rate fixed by
| the people should be a little higher than
| the rate fixed by competition in the
! purchase of stock. If. for instance stock
| which pays a per cent. dividend can
| lie sold at par, n maximum dividend
ought to be enough above that to pro-
4 vide for possible fluctuations III bust
! ness If it requires a per cent. divi-
/ dend to make stock sell at par, then
l. the maximum dividend contemplated
i by legislation should he above ) per
\ cent. or say 6 per cent.
H In case the various states or the ma
4 ton decide to enter upon public own
4 ership Of the roads. there would be no
Il Iisnosition to conhscdtc the property.
II am satisfied that i'm the purchase Of
\ the roads the public would be much
1 more apt to pay more than the roads
Il are worth than less
4 II think | can speak for those who
Il believe in regulation and | know that
H there is not and never has been danger
II Ct Injustice to the owners % the rail-
road and if l can speak for those WHO
II believe that the ultimate solution OF
II the railroad is to be found in pubic
II ownership, | can say there is no dispn-
y sition to confiscate railroad property
even If the courts would permit it,