West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1916-12-14
BRYAN AGAINST
OWNERSHIP BY
TIE GOVERNMENT
Clg3S HaE'aldS Committee His
Views on Railroad Control.
COMPETITION PREFERABLE

Federal Regulation Should Not SO Al
lowed TO Exclude Exereiss Of State
Authority. He Observation-Disclosures Hail.
read Stoke Should Represent Actual
Value and Be Stable az Government
Bonds.
washington. Dec n. - william ].
Bryan, who startled the country ten
years ago by advocating governments
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 u retain authority over the
resCiation OF all transportation lines
within their borders. MIR. Bryan cx-
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.
planned. because | lean To the indi.
Nldual iGea rather than To the collec-
tive idea; that is, ! believe that gov
ernment ownership is desirable only
where competition is impossible"
Alfred i. 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 aud more systematic rec.
uiaton 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 ana regulations. To the practical
| cessation Of new construction and To The
! impoasihil.ty under existing conditions
OF securing the new capital needed for
extensions aud bcttcrments OF railway
facilities. he warned the Congressman
chat unless they provided fair ami
reasonable system OF regulation that
would enable the railroads 10 meet tho
growing needs of the ccuntry's bust
ness the national government would
| he compelled to take over the owner
| ship OF the lines with all the evils at
| tendaut 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 he
step I'm the direction OF government
ownership. lie advanced the view that
| the Capitalization of control I'm the
| hands OF the national government
! would impose zoo great burden upon
| the regulating body. would offer strong
| temptation go railroads to interfere i'm
| politics and would encourage the gen
cral movement toward Capitalization
! of power in the federal government at
the expense of the states. lie said that
/ he did not object % consultations OF
railroad lines 70 long as they did nor
| destroy competition. that he knew of
! 10 complaint against great railway
! systems because OF their size and that
| he believed that the preservation Of
| competition was the test 10 be applied
| to all consultations.
Regulation of Securities.
Mr. Bryansdeclarcd himself i'm favor
ana bond issues bat added that he sa
no reason why that should exclude thu
| states from acting on the same sub
| Iect as 90 state corporations 81 would
| like to see the stock of railroad. as
| long rs il is in private hands. made as
! substantial aud as unvarylng as the
! value Of Il government bond" he as
serted
! He suggested that railroad capitaii-
/ zat0u be readiustcl to- equolize it with
/ actual valuation OF the property rep
| resented, making due allowance for
/ equities. ana that when this was done
| the roads should be allowed TO earn
! sufficient income TO keep their stock
at par and to create 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
ana the amount Of railroad earnings
received further attention from the
| committee during its recent sessions.
/ ln answer 70 questions by Senator
i CuWmius Mr. Thorn submitted figures
| shoWiuo the net earnings Of the roads
+ iu recent years These figures show
/ that during lhr five years from 1905
/ to 1910 tIc average net earnings were
+ 5.21 prr cent oi the net capitalization.
\ while for tho five years from 1910 to
\ 1910 che average was only 45G per
CENT Che tntnl earnings on the stock.
. computed hy adding to the net oucr-
afH Income lhe income from the Sc
Ou.Ic owned lud doIuu.u. bond boo
i t.. were fur 1910. 100 per cont;
I CO. iIii Gl1 per cent; for 1912 an
r.s. iof 1913. 800 per cent. FOR
. .ii INt pr cent. for 1919. $40 per
,. Uu showing an almost oonflu
.I ar throughout Iuis SIS year
o. v announced nat Um
Formerly chairman ~
nru HaHuI Commtsi
Wfn auprtr inform
H 0.... to thc Commit"