Okolona messenger. (Okolona, Miss.) 1900-current, 1916-12-28

Value and BE Stable 40 Government
Bonds.
Washington, Dec. II. 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. Hrs
Against Government Ownership.
Personally / cannot say that l de-
sire government ownership" he ex-
planned, because / lean to the indi-
vidual idea rather than to the collec-
tive idea; that 10, believe that gov
eminent ownership Is 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 Newlands Committee
as one of his reasons for urging 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
Of securing the new capital needed 1oI
extensions and betterments of railway
facilities, he warned the Congressmen
that unless they provided fair and
reasonable system Of regulation thai
would enable the railroads to meet the
growing needs of the country's bust
ness the national government woulc
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 fedora
authority over the railroads would b.
a step in the direction of government
ownership. He advanced the view tina
the Capitalization of control in tn
hands of the national government
would impose too great burden upol
the regulating body, would offer stron
termination to railroads to Interfere Il
politics and would encourage the ger
eral movement toward centralizatlo
of power in the federal government a
the expense of the states. He said tina
he did not object to consol1datlons Q
railroad lines so long as they did nc
destroy competition, that he knew Q
no complaint against great rallwa
systems because of their size and thf
he believed that the preservation
competition was the test to be apple
to all consultations.
REGULATION of Securities.
Mr.. Bryan declared himself in raw
of national regulation of railway stot
and bond issues, but added that he sd
, no reason why that should exclude Il
, states from acting on the same su
iect as to state corporations. Il wou
, like to see the stock of railroad,
long as it is In private hands, made
substantial and as unvarying as {
value of a government bond" he
serted.
He suggested that railroad capita
zation be readjusted to equalize 1t WI
!, actual valuation of the property re
n resented, making due allowance
equities, and that when this was DO
: the roads should be allowed to ca
It sufficient income TO keep their sto
g at par and to create a surplus. L
latter, he tentatively proposed, mig
:. be allowed to amount to IS per &c
Of the capital
Railway Earnings Low.
!, This subject of railroad capitalizatl
:" and the amount Of railroad earnir
/. received further attention from
|, committee during its recent sessio
q In answer to questions by sena
a Cummins, Mr.. Thorn submitted hgu
4 showing the net earnings Of the roi
r In recent years. These figures 81
r that during the Eve years from i
to 1910 the average net earnings W
5.25 per cent Of the net capitalizatl
while for the Ave years from 1elO
1915 the average was only Aus
cent The total earnings on the ste
F., computed by adding to the net OF
II ating income the income from the
VI curities owned and deducting bond
= terest, were for. 1910, TOO per CT
" for 1911, alt per cent? for 1912,
Der cent, for 1918. b.S4 per cent;
1p1A. 400 per cent; for 1915, 8.A
Id cent thus showing an almost con
n uous decrease throughout this six
Al period. Il was announced that
a. ford Erickson, formerly chairman
~ the wisconsin Railroad Commas
~ would submit more complete infor
Il ten % this subject b the Ocmmi
aka later data.