Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1916-12-24

/ ~~Ss az b1SSAlahiOu SFlOut0 NQI DC Al
lowed TO Exclude Exercise of State
Authority, He Contends-Thinks Rail.
road Stocks Should Represent Actual
Value and Be Stable as Government
| Bonds.
Washington, Dec. &. William J
Bryan, who startled the country ten
years ago by advocating government
ownership of railroads, appeared be-
] fore the Newlands Joint Committee Oh
Interstate Commerce last week In sun.
! 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-
| plained, because l lean to the indi-
/ vtdual 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, counsel to the Rail
way Executives Advisory Committee,
previously had presented before the
| Of ha
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
Of securing the new capital needed for
extensions and betterments of railway
facilities he wfrned the Congressman
that unless they provided a fair and
reasonable system of regulation that
would enable the railroads to meet the
Wing nNttlo VI tllt COuulAI JUST
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 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
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
competition 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. 81 would
like to see the stock Of a railroad, as
long as 1t Is in private hands, made as
substantial aud as unvarying as the
value Of a government bond" he as
serted.
He suggested that railroad capitali-
zation be readjusted to equalize it 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 a 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 100;
to 1910 the average net earnings were
525 per cent of the net capitalization
while for the FIVE years from 1910 t.
1915 the average was only 4.56 pei
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, GIT per cent; for 1912, 49I
per cent; for 1913, 5.94 per cent; fol
1914, 4.06 per cent; for 1915, 3.44 pei
cent. thus showing an almost contin