Crossville chronicle. [volume] (Crossville, Tenn.) 1894-current, 1916-12-20
BRYAN AGAINST
OWNERSHIP BY
THE GOVERNMENT
GIVes NowIands Committee His
Views on Railroad Control
COMPETITION PREFERABLE.

Authority, He Contends-Thinks Rail.
road Stocks Should Represent Actual
Value and Be Stable as 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
ernment ownership as inevitable. but
only because Of railroad opposition to
effective regulation.
Against Governments Ownership.
Personally I cannot say that l de-
sire government ownership" he ex-
planned, because 1 lean to the ind1-
vidual idea rather -thnn 10 the collecs-
tive idea; that is, I believe that gov
srnment ownership is desirable only
where competition II impossible"
Alfred P. Thorn. counsel to the Rail
way Executives Advisory Committee.
previously had presented before the
members Of the Newlands Committee
90 ono Of his reasons for urging q bet
kac ho Ia conA onA ,,oo~n avs<avv,o n <}o rnr~
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
lmpossibility under existing conditions
Of securing the new capital needed for
extensions and betterments Of railway
facilities, he warned the Oongrsssmsn
that unless they provided 4 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
bs 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 GENERALIZATION 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
be believed that the preservation Of
was the test to be applied
to 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
ject as to state corporations. Il would
like to see the stock Of railroad, as
long as it is in private hands, made as
and as unvarying as the
value of a government bond" he as
serted.
He suggested that railroad capitall-
zation be readjusted to equaliZe it with
actual valuation Of the property rep |
making due allowance fo |
equities. and that when this was don
the roads should be allowed to earn
sufficient income to keep their stocn |
Mt par and to create q surplus. IT,,
latter, he tentatively proposed. ME,
be allowed to amount to % per ccu,