The Morgan City daily review. (Morgan City, La.) 1916-1920, 1916-12-20
BRYAN AGAINST
OWNERSHIP BY
THE GOVERNMENT

Views on Railroad Control.
COMPETITION PREFERABLE,
Federal Regulation Should Net D Al.
lowed to Exclude Exercise Of Stats
Authority, He contends-ThInks Rail-
road Stocks Should Represent Actual
Value and Be Stable ~ 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 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.
Against Government Ownership.
PERSONALLY / cannot say that l de-
sire government ownership" he ex-
planned, because l lean to the indi-
vidual 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
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 for
extensions and betterments Of railway
facilities, he warned >the Congressman
that unless they provided q 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
he 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
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
the regulating body, would offer strong
temptation to railroads to interfere in
politics and would encourage the gen.
cral 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
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
was the test to be applied
70 all consultations.
Regulation Of Securities.
Mr. Bryan declared himself in favey
u national regulation Of railway etpee
and bond issues, but added that he cav
10 reason why that should exclude the
states from acting on the same sub
|ect as to state corporations. II woule
ike to see the stock Of railroad, -
ong as it is i'm private hands, made -
and as unvarying as the
-aluc Of government bond" he as
serted.
He suggested that railroad capitali-
alton be readjusted to equalize 1t with
lctual valuation Of the property rep
making due allowance for
'quities, and that when this was done
he roads should be allowed to earn
uficient income to keep their stock.
It par and to create surplus. The
after, he tentatively proposed, might |
'e allowed TO amount to % per cent
Z the capital.
Railway Earnings Low.
This subject Of railroad capitalization /
nd the amount of raj earnings