The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1916-12-14
BRYAN AGAINST
OWNERSHIP BY
THE GOVERNMENT
Gives ASWiaHGS Committee Ills
Views on Railroad Control
COMPETITION PREF ERABLE.

Federal Regulation Should Not Be Al.
lowed to Exclude Exercise of State
Authority, He contends-Thinks Rail-
road Stocks Should Represent Actual
Value and 5e Stable az Government
Bonds.
| Washington, Dec. II. - william ].
Bryan, who startled the country ten
"ears 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 t, ut 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.
SA"NA0ilJ EoHnoL say LIdL uO-
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 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 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 bettermentg OF railway
facilities. be 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 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 Composition.
Mr.. Bryan, on the other hand, holds
that the further extension of federal
authority over the railroads would be
q 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
he regulating body, would offer strong
to railroads to interfere in
politics and would encourage the gem
eral movement toward Capitalization
If power In the federal government at
he expense Of the states. He said that
le did not object to consultations of I
abroad lines so long as they did not
lestrOy competition, that he knew of
10 complaint against great railway
ystemS because of their size and that !
lie believed that the preservation of
was the test to be applied
o all consultations.
Regulation of Securities.
Mr.. Bryan declared himself in favor
If national regulation of railway stock
md bond issues, but added that he saw
10 reason why that should exclude the
states from acting ON the same sub
ect as to state corporations. 81 would
ike to see the stock of railroad, as
ong as it is in private hands, made as
and as unvarying as the
'alue of government bond" he as
erted.
He suggested that railroad capitali-
alton be readjusted to equalize it with
ctual valuation of the property rep
making due allowance for
Quities, and that when this was done
he roads should be allowed to earn
efficient income to keep their stock
t par and to create a surplus. The
after, he tentatively proposed, might
'e allowed to amount to % per cent
( the capital.
Railway Earnings Low
This subject of railroad capitalization
nd the amount of railroad earnings
eceived further attention from the
Ommittee during its recent sessions.
n answer to questions by Senator
ummins, Mr.. Thorn submitted figures
hOwing the net earnings of the roads
/ recent years. These figures show
nat during The FIVE years from 1905
} 1910 the average net earnings were
% per cent Of the net capitalization,
lille for the FIVE years from 1910 to
915 the average was only 456 per
mt. The total earnings on the stock,
omputed by adding to the net oper-
ting income the income from the Sc
lrities owned and deducting bond in
rest were for 1910, 7O9 per cent;
IT 1911, Gil per cent; for 1912, 4.97
er cent; for 1913, 5.94 per cent; for
IA, 4.06 per cent; for 1915, 3.44 per
mt. thus showing an almost contin-
Dus decrease throughout this six year
ariOd. 1t was announced that Hal
'rd Erickson. formerly chairman Of
'e Wisconsin Railroad Commission,
Ould submit more complete informa-
On on this subject to the COMMITTEES
u later date.