New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-21
BRYAN'SRAILR0ADPLAN
VALUE BASIS FOR RATES.
"Gouernment Control, Honestly
Tried" His Present Programme.

tion of his views of government ownership and
rafemaking was given to a Publishers Press
representative in Washington recently by Will
fam J. Bryap. It's substance is follows:
Government control should be tried under
the most favorable conditions It should he at
tempted conscientiously and should exhaust
every possibility. 1t should not be invoked by
any who makes the wish the father OF the
thought-that control viii fail and that owner
ship eventually must come 10 pass. To whom
ever is intrusted the task OF executing laws for
such control. he owes it TO his nation TO throw
himself vigorously and with honest endeavor
into the movement Control is much more de-
srable than ownership. and, if It will accom-
plish needed reforms, it is the ultimate most to
be desired.
Rates should be based on the value of the
properties Of the common carriers. This valua-
tion should be not the market value of the
shares and bonds the Stock Exchange. be-
cause these sold in view of the possibility of
producing revenue rather than OF the actual in
vestment which has been laid in building the
systems. Appraisal should not legitimze at par
valuation existing fotations which contain a GER
tain proportion Of water. but existing stocks and
bonds should be dealt with exactly according TO
their real intrinsic value, and the water should
he squeezed therefrom. The law should then
prevent further watering of stocks so that rates
may be determined 10 permit reasonable re-
turn on actual investment
Mr.. Bryan further elucidates his views by
saying that he doubts that government control
VIII prove 10 he adequate. He believes that it
viii be necessary TO give the people an honest
attempt TO solve the transportation problems
through government control. because they are
disposed 10 believe that control viii eventually
prove 10 be adequate. To put into effect a sys-
TEN Of government ownership before control
he'd been honestly tried, would be 10 invest the
government with distrust in the minds of the
.eople, and any administration which was to do
fhs would fail Honestly tried, thoroughly adj
Ininistered. intelligenty wrought out govern
lnent control, therefore. is Mr Bryan's present
programme.
When. however. Mr.. Bryan believes will
prove true. control has been demonstrated TO
he inenectual, then it win be necessary 20 go TO
federal government ownership. Of trunk lines
Mr.. Bryan is disposed to believe that, as in
the past. so in the future. private ownership OF
railways VIII cause a constant corrupting Of
the body polite. He holds that even under
rigid control the incentive for the private own
er and manager TO befoul the political system
viii remain. and that such befoung viii con-
tinue in greater or lesser degree as in the past.
rendering private ownership incompatible with
the interests of the masses.
Mr.. Bryan has never to this day declared
for the present Inauguration Of government
ownership. but insists ana has insisted every
time he has spoken. that control should be hon
estiy tried. and in no half hearted manner.
HIs ULTIMATE SOLUTION"
IN proclsiming this doctrine Of government
relationship 70 railroads Mr.. Bryan realizes
that he IS running counter TO millions Of people
n This country. and that many OF the Democrats
are disposed 70 take issue with him His wish
however. is not 10 popularize himself with the
people. but 70 reach the ultimate solution Of
the problems which vex the nation now; first
10 cure evils flowing from overcapitalization:
second n compel that rates shall be lowered to
level justified by the conditions and demanded
by the rights Of the producers and consumers
The nation. I'm short. which gives to the rail-
road its franchise and grants il the right of emil
hent domain as well other vital privileges
mol given 70 other institutions or corporations
Discussing the central idea of hts belief. he
CITES me situation in which nearly every munich
paty in the United States finds itself Fran
chlses have been given freely by the people in
order 10 get public utilities quickly These fran
chiseS have grown 10 be things Of immense
value laying upon the citizenship Of the cities
ualiy toN OF which the use of the free fran
ch'Se constitutes The greater element of profit
.ffsnchse holders. and what do you OBSERVE
-"'' practically without exception common
councils refuse 10 take firm ground 10 protect
me people ia their rights. the franchise holders
continue 10 levy extortionate tolls on the cit-
Nens' and attempts 10 work out a satisfactory
system Of municipal control invariably resuI,
in failure
~ regard 10 the argument that government
ownership would entail a system whereunder
slheiency would be reduced as to administra-
son existing conditions are cited as proving. AT
VAS thar private ownership has not been
brilliantly successful: that the TRANSFORMATION
business of the nation is in situation not to
sefect high credit on the present method Of
handling the railroads
Successful management OF railroads would
nave prevented the raising Of the issue as 10
ownership by the government: failure OF private
ownership has been the very thing which has
raised the question, and raised II IN a manner
Pfeciuding The retirement OF the issue with
superficial argument. The people demand that
lawmakers go 10 the bottom Of the matter and
settle # right
Thorough trial OF government control then
ana rates based on actual valuation of railroad
physical properties, rigid conservation OF the
rights Of actual investors I'm the enjoyment OF
reasonable return from their actual investment
are the final programme OF MI Bryan: r. as he is
oisposed 70 believe will come IS pass control
prove failure then ownership By the govern
ment as the ultimate
AND this is the position held by William J.
0syan authoritatively announced"
BRYAN THANKS THE PRESIDENT.
nv Telegram, n The Tribune