The Manchester journal. [volume] (Manchester, Vt.) 1861-current, 1916-12-14

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 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
eminent 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 colec-
tive idea that is, believe that gov
eminent ownership is desirable only
where competition Is impossible"
Allied T. Thorn. counsel to the Rail
way Executives Advisory Committee,
previously had presented before the
| members of the NewandS Committee
ms one Of his reasons for urging Il 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 10y conflicting state
laws aud regulations. 10 the practical
cessation Of new construction and to the
impossbility 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 country's 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 a system.
Preservation of Competition.
Mr.. Bryan. on the other hand, holds
that the further extension of federal
authority over the railroads would be
step III 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 at
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
10 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 /
jcet as 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 unyarying as the |
value Of government bond" he as
serted
He suggested that railroad capitals I
zatlon be readjusted to equalize II with 1
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 10 create a surplus The
latter. be tentatively proposed. might
he allowed TO amount to p per cent
Of the capital.
Railway Earnings Low.
This subject Of railroad capitalization
and the amount 81 railroad earnings
received further attention from the
during its recent sessions.
In answer 10 questions by Senator
-ummins. Mr. Thorn submitted figures
showing the net earnings Of the roads
IN resent years These figures show
that during the Eve years from 1905
q 1910 the average net earnings were
y per cent Of tie net capitalization,
ghile for the Eve years from 1910 10
1913 tho average was only $50 per
.ent. The total earnings on the stock
computed rs adding 30 the net oper-
itins income the income from the Sc.
urities owned and delucting bond 81
crest wefr for 1910. T09 per cent:
or 1911. CIR per cent; for 1912. 4g7
,er eeut fDr 1918. 594 per cent: for
ail 4te per cent. for 1915 34+ per ;
ent TINS showing en- almost contin
oHs lel Tease throughout this six year
,eritsi Il was announced that Hal
ord Erickson. formerly chairman o.
b. wisconsin Railroad Commission.
would sahml more complete lnforma
ion on this subject TO the Committee q
I later date I