The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1916-12-28
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BRYAN AGAINST
CWNERSH BY
The GOVERNMENT
Gives NaWIandS Committee His
Views on Railroad Control
COMPETITION PREFERABLE

FEDERAL Regulation Should Not Be Al
lowed to Exclude Exercise Of State
Authority, He contends-Thlnks Rail-
road Stocks Should Represent Actual
Value and Be Stable az 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 Government Ownership.
PERSONALLY ! cannot say that de
sire government ownership" he ex.
plained, because l lean to the indi.
vidual idea rather than to the collec.
tive idea; that is, l believe that gov
ernment ownership is desirable only
where competition is impossible"
Alfred z. Thom, counsel TO the Rail
way Executives Advisory Committee,
previously had presented before the
members OF the NewIands Committee
as tne OF his reasons for urging a bet.
ter balanced and more systematic reg
ulation OF railroads the argument that
this II the only alternative to govern
ment ownership. Calling attention tc
the restrictions imposed upon the
transportation lines by conflicting state
laws and regulations. to the practical
cessation OF new construction and to the
imposslbillty under existing conditions
OF securing the new capital needed for
extensions and bctterments OF railway
facilities, he warned the Congressman
that unless they provided 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 woule
be compelled TO take over the owner
ship OF the lines with all the evils at
tendant upon such system.
Preservation Of Composition.
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 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
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 II would
like to see the stock OF a railroad, a.
long as II is In private hands, made as
substantial and as unvarying as the
value Of a government bond" he as
serted.
He suggested that railroad capital
zation be readJusted to equallze II will
actual valuation Of the property rep
resented, making due allowance fol
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, nigh:
be allowed to amount TO 25 per cent
OF the capital.
Railway Earnings Low.
This subject Of railroad capitalization
and the amount Of railroad earning
received further attention from th'
committee during Its recent sessions
In answer to questions by Senatoj
Cummins, Mr.. Thorn submitted figure
showing the net earnings OF the road,
In recent years. These figures show
that during the five years from 10o!
to 1910 the average net earnings wen
5.25 per cent Of the net capitalization
while for the Ave years from 1910 t,
1915 the average was only 4.50 pc
rent The total earnings on the stock
computed by adding to the net oper
Itlng income the income from the Sc
cunties owned and deducting bond in
terest, were for 1910, 100 per cent
for 1911, 61T per cent; for 1912, 40
per cent; for 1913. 5.94 per cent; FOL
1914. 4OG per cent; for 1918. 3.i4 pei
cent, thus showing an almost contin
uous decrease throughout this six yea,
period. II was announced that Hal
ford Erickson. formerly chairman Of