The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1916-12-16
Against Government Ownership.
effective regulation.

tuetlINe ItSuldllOll.
Against Government Ownership.
PERSONALLY | cannot say that | de
sire government ownership" he ex-
planned, because | lean to the indi.
vidual idea rather than to the collec.
tive idea; that is, ! believe that gov.
eminent ownership is desirable only
where competition Is impossible"
Alfred +. Thorn, counsel to the Rail.
way Executives Advisory Committee.
previously had presented before the
members of the Newlands Committee
as one Of his reasons for urging bet
ter balanced and more systematic reg.
ulation of railroads the argument that
this is the only alternative to govern
ment ownership. Calling attention to
the restrictions imposed upon the
transportation lines by conflicting state
laws and regulations, to the practical
cessation OF new construction and to the
impOsSibility under existing conditions
of securing the new capital needed for
extensions and betterments of railway
facilities, he warned the congressman
that unless they provided a fair and
reasonable system of regulation that
would enable the railroads to meet the
growing needs of the countrys bust
ness the national government would
be compelled to take over the owner
ship of the lines with all the evils at
tendant upon such system.
Preservation of Competition.
Mr.. Bryan, on the other hand, holds
that the further extension of federal
authority over the railroads would be
a step in the direction Of government
ownership. He advanced the view that
the Capitalization of control in the
hands of the national government
would impose too great burden upon
the regulating body, would offer strong
temptation to railroads to interfere IN
politics and would encourage the gen
eral movement toward Capitalization
Of power in the federal government al
the expense of the states. He said that
he did not object TO Consoidatious OF
railroad lines so long as they did not
destroy competition. that he knew of
no complaint against great railwa,
systems because Of their size and that
he believed that the preservation Of
competition was the test to he applied
to all consultations
Regulation Of Securities.
Mr. Bryan declared himself in favor
Of national regulation of railway stock
and bond issues. but added that he saw
no reason why that should exclude the
states from acting on the same sub
ject ms to state corporations. Il would
like to see the stock OF railroad. as
long as it is in private hands, made as
substantial and as unvarying as the
value of a government bond" he as
serted.
He suggested that railroad capitan.
cation be rcadiusteh to eUualze it with
actual valuation Of the property rep.
resented. making due allowance fot
equities and that when this was done
the roads should he allowed to earn
sufficient income to keep their stock
at par aud - create surplus TIL"
latter. he tentatively proposed. might
be allowed to amount to 81 per cent
OF the capital.
Railway Earnings Low.
This subject of railroad capitalization
and the amount Of railroad earnings
received further attention FROM tn"
committee during its recent Session.
In answer to questions by Snr. t"'
Cummins Nj Thon Submitted figure,
showing the net earnings of tn" roads
In recent wears These figures show
that during the five years from 1870.
to 1910 the AVERAGE net earnings were
5.25 per cent of the net Capitalization
while for the five years from 1910 t.
1915 the average was only 4.56 PEI
cent The total earnings on the stock
computed by adding to the net opcr.
ating income the income from the Sc
curities owned and deducting bond in
terest. were for 1910 100 per cent:
for 1911, Gil per cent: for 1912. 4.97
per cent: for 1913, 5.04 per cent; for
1914, 400 per cent; for 1915, 3.44 pei
cent, thus showing an almost contin.
nous decrease throughout this six veal
period. 1t was announced that Hal
ford Erickson, formerly chairman OF
the Wisconsin Railroad Commission
would submit more complete inforna.
lion on this subject to the COMMITTEES
ut a later date.