The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-03-30
RAILROAD VIEWS
HELD BY BRYAN
FaVorS National and State Reg
uIatiOn With Ultimate Pub
lie Ownership.
WOULD PROTECT INVESTOR
NO DISPOSITION TO PREVENT
REASONABLE PROFITS.

Boston. March oh. N Whitney to-
night made public a letter he had just
received from William J. Bryan, dealing
with the railroad question, II follows in
part:
Il am i'm favor of both national and
state regulation. and / also believe that
public ownership is the ultimate sOlu-
ton of the railroad question. In my dis
cuSSiOns / have pointed out that because
Of the danger of Centraliza ton in owner
ship by the federal government Of all the
lines. / prefer a system in which the
federal government will be confined to
the necessary trunk lines and the own
ership of the rest of the lines be left
to the states.
'As an advocate of regulation of the
StrlcteSt sort, ! can say to you that there
IS no danger whatever that this regulation
Will be carried to the point OF prevent
ing a reasonable return on money invest
ed in the railroads of the country. And I
also assure you that whenever public
ownership is adopted by the states or by
the nation the stockholders may expect
to receive price at least equal to the
value of the physical properties of the
roads. but no such assurance ought To
be necessary because the public has
shown no disposition TO reduce railroad
earnings to point which would deny
reasonable return
Would Fix Values.
u have contended that the present val
Ne of the railroad should be ascertained
by the interstate commerce commission
and the commissioners of the various
states. in order that investors may know
when they are buying stocks of intrinsic
value and when they are being cheated
As long as promoters are permitted 10
issue stock that does not represent real
value there must be fluctuations in the
stock market for every disclosure of bad
railroad mana cement necessarily affects
the value of railroad stocks. The stock
holders. therefore. who desire to purchase
fnr chorsTd har-
much interest as the patrons i'm reducing
the railroad business 10 an honest basis
but the railroads thus far have prevent
ed the passage of a law authorizing the
interstate commerce commission to fix the
value of the roads.
For Reasonable Dividends.
when the value Of the raods is ascer-
tanned / am satisfied that public senti-
ment will insist that the returns shall be
sufficient to pay a reasonable dividend
upon the money invested. ] should say
that any maximum rate for this dividend
fixed by the people should be little
/ higher than the rate fixed by the COM
petition in the purchase of stock. If, for
/ instance. stock which pays a 4 per cent
dividend can be sold at par. a maximum
dividend ought to be enough above that
to provide for possible fluctuations in
business. If it requires a , per cent divi-
dend to make a stock sell at par. then
( the maximum dividend contemplated by
legislation should be above per cent or
say per cent.
In case the various states or the ma
ton should decide to enter upon public
ownership of the roads there would be
no disposition 20 cOnfscate the property.
1 am satisfied that in the purchase OF
roads the public would be much more apt
to pay more than the roads are worth
than less.
4 think l can speak for those who be
lieve in regulation. / know that there is
not and never has been danger of inius-
tice to the owners Of the railroads, and
if l can speak for those who believe that
the ultimate solution of the railroad is to
be found in public ownership. l can say
there is no disposition to confiscate rail-
road property even if the courts would
permit it..