The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1916-12-27
BRYAN AGAINST
OWNERSHIP BY
The GOVERNMENT
Gives Mew|andS Committee His
Views on RailrOSd Control.
COMPETITION PREFERABLE.

Federal Regulation Should Not Be Al.
lowed to Exclude Exercise of State
Authority, He Contends-Thinks Rail,
road Stocks Should Represent Actual
Value and Be Stable as Government
Bonds.
Washington Dec - William J
Bryan, who startled the country ten
years ago by advocating government
ownership of railroads, appeared be
fore the Newlands Joint Committee ON
Interstate Commerce last week In sup
port of the claim that the states should
be allowed to retain authority over the
regulation of all transportation lines
within their borders. Mr. Bryan ex
planned that he had long regarded gov.
ernment ownership as inevitable. but
only because of railroad opposition to
effective regulation.
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.
ernment ownership is desirable only
where competition is impossible
Alfred L. Thorn, counsel to the Rail
way Executives Advisory Committee
previously had presented before the
M. att..t., ,Sgs =
as one of his reasons for urging a 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
or securing the new capital needed for
extensions and betterments of railway
facilities. he warned the Congressman
that unless they provided fair and
reasonable system of regulation that
would enable the railroads to meet the
growing needs of the country's busi.
ness the national government would
be 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 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 i'm
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 consultations of
railroad lines so long as they did not
destroy competition. that he knew of
| no complaint against great railway
| systems because of their size and that
he believed that the preservation of
| competition was the test to be applied
! W dll foHSblludtlOns
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
/ iect oa to state corporations IL would
| like to see the stock of railroad, as
long as II is in private hands, made as
substantial and as unvarying as the
/ value Of a government bond" he as
serted.
He suggested that railroad capitali
zation be readjusted to equalize 1t with
actual valuation of the property rep
resented. making due allowance for
! equities, and that when this was done
the roads should be allowed to earn
sufficient income to keep their stock
at par and to create a 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
ana the amount OF rallroau earnings
received further attention from the
committee during its recent sessions
In answer to questions by Senator
| Cummins, Mr.. Thorn submitted figures
showing the net earnings Of the roads
in recent years These figures show
that during the five years from 1905
to 1910 the average net earnings were
5.25 per cent Of the net capitalization.
while for the five years from 1910 to
1915 the average was only 4.56 per
cent The total earnings on the stock.
computed by adding to the net oper-
ating income the income from the Sc
curities owned and deducting bond in
tsrsQt were for 1910. TOO DER cent: