The sun., 1916-12-08
BRYAN AGAINST US.
RAILINCORPORATION
Ex-Secretary Of State in vigor-
Gus Protest to Newlands
Commission.
URGES STOCK GUARANTEE
Radicals Shocked by Demo-
cratic Leaders Fav0ring
Of the Roads.

"AsHiNGTON, DeC. s.-Wlilan u.
Bryan appeared before the Newlands
joint committee Of Congress to-day and
vigorously opposed the plan for Federal
Incorporation Of railroads engaged in
interstate commerce. Mr.. Aryan was
the only witness to-day and the commit
tee did not get through with him. He
consented to return in January to be
questioned further.
While most OF Mr.. Bryan's proposals
pleased the radicals. he caused great
CONSERVATION among them when he pro-
posed legislation to place securities of
railroads ION the same basis Of stability
as Government bonds" The speaker
said he would do this by permitting the
railroads to charge q rate that would
keep their stocks always at par and
enough in addition to create a sinking
fund UP to 25 per cent. OF their capt.
talixation to meet the requirements OF
the lean years" and guarantee the re-
turn Of dividends on the stock.
Democrats Are DisappeiateA.
The former Secretary Of State !nti-
mated 5 per cent return on the stock
ought to meet the demands Of investors
and that per cent. in addition for the
sinking fund would about meet his idea
The radicals said he had unconsciously
suggested something that exceeded the
widest dreams of the railroad managers
themselves and had evolved a plan that
practically amounted to a guarantee on
railroad issues.
The Democratic leader also disap-
pointed some of his followers when he
declared his opposition to Government
ownership Of railroads as a fundamental
proposition. but said II would be in
evitsble unless the railroad owners
changed their attitude toward regula-
tion.
He compared railroads with municipal
such a way as to make public owner.
ship necessary.
Always for Private ownership.
Mr.. Bryan declared he had Away.
believed In individual private ownership
as better than Government ownership.
He explained that his attitude had been
misunderstood and that he had ad-
vocated Government ownership only a.
an alternative.
Mr.. Bryan was rather severe on
Congress and on the railroads. He
warned Senator Newlands that the lat
INCORPORATION
would be an entering wedge for Govern
ment ownership. for Il would lead TO
evils that the people would not tolerate
and they would take over the roads.
he believed Congress would be less
mindful OF the public interest than State
legislatures are and that the restrictive
Influences on the railroads would be
less under Federal control because the
Government would be further removed
from the people
The witness charged tha. when the
new Union station in Washington was
being authorized by Congress, TO which
the Government contributed half the
expense. two leading railroads had lob.
oyists In the corridors Of the Capitol
who handed out railway passes TO mem
bers who voted for the bill. and Mr.
Bryan said he knew OF one instance
where pass was refused member
who had voted against the bill.
Railroad Elected C0ngreasman.
Mr.. Bryan also charged that while he
was member OF the House one railroad
was bold enough TO elect its president 10
Congress. and from his place on tn.
hoor he directed campaign aga!ns,
DIS to enlarge the powers Of the Inter-
state Commerce Commission in the in
terest Of the public
III We want less regulation than We
now have l know Of no better way 10
get II than 20 pass this legislation for |
Federal incorporation" said Mr.. Bryan. |
My reaso1 for coming before you is
that this prnposIton for Federal incor-
porat!on is OF such great importance. so /
revolutionary. that, as one Interested in |
all things that affect the Government
and the people. I felt II my duty to be
present and represent the other side"
Mr.. Bryan said that Federal incorpo- |
ration would shoulder upon the Govern |
ment an overwhelming burden and that
the ofic'al organization TO handle IL |,
would not be able TO give the necessary
attention TO details.
The further you remove regulation !
from the people the moro difYicult you |
will find II to regulate successfully. f"
said the witness. "for IL there is any
virtue In representative government the |
representation is best when the regula-
tion Is nearest home"