Roanoke Rapids herald. [volume] (Roanoke Rapids, N.C.) 1914-192?, 1916-12-15
BRYAN AGAINST
OWNERSHIP BY
The GOVERNMENT
Gives ReWlands Committee Ills
Views ON Railroad Control
COMPETITION PREFERABLE,

GUMfEllilUN nEfchA6lE,
Federal Regulation Should Not Be A.
lowed to Exclude Exercise Of STATE
Authority, He Contends-ThinHs Rail-
read Socks Should Represent Actua
Value and Be Stable as Government
Bonds.
Washington. Dec IL. - William j
Rryan. who startled the country ter
,ears ago by advo< Ht!ng government
ownership of railroads, appeared be
fore the Newlands Joint Committee Oh
Interstate Commerce last week In sup
port Of the claim that the 2tates should
he allowed to retain authority over the
regulation Of all transportation lines
within their borders. Mr.. Bryan OK
piained that he Lad long regarded gov
eminent ownership as inevitable, but
only because of railroad opposition to
etfel tive regulation.
Agsinst Government Ownership.
'rei soma ly cannot say that ! de
sire gov erument ownership" be eX
planned. because | lean to the indi
yidual idea rather than 10 the eollec
tive idea. that Is, | believe that gov
eminent ownership Ia desirable only
where competition Is impossible.
Alfred p Thorn, counsel to the Rail
way Executives Advisory Committee
previously had presented before the
members of the Newlandr Committee
as one Of his reasons for urging bet
ter balanced and more systematic reg
ulatiou 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
Impossiblity under existing conditions
Of securing the new capital needed for
extensions ard hettermenls Of railway
facilities he warned the congressman
that unless they provided 4 fair and
reasonable system of regulation that
would enable the railroads to meet the
growing needs Of the co0ntry's bust
ness the national government would
I've compelled to take over the owner
ship Of the lines with all the evils at
tendant upon such a system
Preservation OF Competition.
Mr. BRYAN, on the other baud, holds
that the ftsther extension OF federal
authority over the railroads would be
step III the direction Of ernmen,
ownership Tie advanced the view thai
the Capitalization Of control In the
hands oi the national government
would impose too great burden upon
the regulating body. would oler strong
temptation to railroads to interfere In
polltis and would encourage the gen
arai movement toward Capitalization
Of power In the federal government al
the expense Of the states He said that
he did not object TO consultations OF
railroad lines so long Ms they did not
destroy competition. that he knew of
40 complaint against great railway
systems because Of their size and that
he believed that The preservation OF
competition was the ties. to be 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 as tn state corporations. Il would
Ike to see the stock Of railroad, hs
long MS 1t is IN private hands, made as
substantial and MS unvarying as the
value of government bond be as
serted
He suggested that railroad capital
zation be rcndjusted TO equalize II With
actual valuation OF the property rep
resented. making due allowance for
equities. and That when this was done
the roads should be allowed 10 earn
sufficient income to keep their stock
at par and to create surplus The
latter he tentatively proposed, might
be allowed to amount to % per cent
Of the capital.
Railway Earnings Low.
This subject of railroad capitalization
and the amount of railroad earnings
received further attAlti0n from the
committee during Its recent sessions
In answer to questions by Senator
Cummins. Mr. Thorn submitted figure
showing the net earnings OF tile roads
In recent years These figures sho"
that during the FIVE years from lOs
10 1910 the average net earnings we're
5.2S ner cent Of the net capitalization.
while for the five years from 1910 to
1915 the average was only Am pei
cent. The total earnings On the stock
computed by adding to the net oper
ating income the income from the Sc
curities owned and le,Mctlng bond In
taras5 uarp for f0ln 100 Drr cent