The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1916-12-22

Federsi Regulation Should MOI b ~
lowed 70 Exclude Exercise OF Stats
3, Authority, He Observation-Disclosures Rail-
road etooks Should Represent Actual
Value and Be Stable as Government
Bonds.
Washington. Dec. IL 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 hast week In sup.
port Of the claim that the states should
be allowed to retain authority o1er the
regulation Of all transportation lines
within their bordeB. Mr.. Bryan en-
planned that he had long regarded gov
eminent ownership az Inevitable but
only because OF railroad opposition to
effective regulation.
Against Government Ownership.
Personally cannot say that do
sire government ownership" be e1-
planned, because / lean to the indt
vidual idea rather than to the collec-
tive idea; that Is, believe that gov
eminent ownership Is desirable only
where competition is impossible"
Alfred P, Thorn, council to the Rail
way B1ecutives' Advisory Committee
previously had presented before the
members Of the Newlands Committee
as ono OF hts reasons for urging q bet
ter balanced and more systematic reg
ulation Of railroads the argument that
this Is the only alternative to govern
ment ownership, Calling attention b
the restrictions imposed upon the
transportation lines by conflicting state
laws and regulations. to the practical
cessation OF new construction and 10 tho
impossibility under existing conditions
of securing tho new capital needed for
extensions and betterments Of railway
facilities, he warned the Congressman
that unless they provided q fair and
reasonable system Of regulation that
would enable the railroads 10 mee< the
growing needs OF the cpuDtry'B bod
mesa the national government would
he compelled TO take over the OWNS
ship OF tho lines with all the cvils a.
tendant upon such q system.
Preservation Of Composition
Mr. Bryan, ON the other hand, hUlfs
that the further extension Of federal
authority over the railroads would be
q step In the direction of government
Ownership. He advanced tho view that
the Capitalization OF control In the
hands of the national government
would impose too great burden upon
tho regulating body, would ofrer strong
temptation to railroads to interfere In
politics and would encourage the gen
eral movement toward Capitalization
OF power In the federal government ct
tho expense Of the states. He said that
he did not object to consultations Of
railroad lines so long az 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 10 be applied
to all consultations
Regulation OF Securities
Nh 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 to state corporations Il would
like to see the stock OF raifroad, as
long as 1t Is In private hands, made Us
substantial and as unyarying a. the
value Of government bond be as
serted
He suggested that raflroad capitAfi
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 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 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
B.25 per cent of the net capitalization,
while for the FIVE years from 1910 to
1918 the average was only 4-b6 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
terest, were for 1910, 100 per cent;
for 1911, 617 per cent; for 1912, 497
per cent; for 1913, 5.94 per cent? for
1914. 400 per cent; for 1915, 8,44 per
cent thus showing an almost contin-
uous decrease throughout this six year
period. II was announced that Hal
ford Erickson. formerly chairman Of
the Wisconsin Railroad Commission,
would submit more complete ihforma-