The daily star-mirror. (Moscow, Idaho) 1911-1939, 1917-01-02
Gives New|dnds Committee His
Views on Railroad Control.
COMPETITION PREFERABLE.

! 0ono1s
Washington, Dec. IL. - William
Bryan, who startled the country ter
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 I lean to the indi-
yidual idea rather than to the collec-
tive idea; that is, 1 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
bo ri ofi ho
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
that unless they provided fair and
reasonable system Of regulation that
would enable the railroads to meet the
growing needs of the countrys bust
ness the national government would
be compelled to take over the owner
tendant upon such a system.
Preservation Of Composition.
IL,
that the further extension Of federal |
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 |
he regulating body. would offer strong
,fo tn railrOoGs IN intQrfaro In
politics and would encourage the gen
,ral movement toward Capitalization
If power in the federal government at
he expense of the states. He said that
lie did not object to consultations Of
abroad lines so long as they did not
lestroy competition. that he knew Of
10 complaint against great railway
ystems because OF their size and that
lie believed that the preservation of
was the test to be applied
o all consultations.
Regulation -ecurities.
Mr.. Bryan declared himself in favor
# national regulation Of railway stock
md bond issues but added that he saw
10 reason why that should exclude the
tates from acting on the same sub
ect as to state corporations. II would
Ike to see the stock of railroad, as
ong as it Is In private hands. made as
and as unyarying as the
-alue of government bond" he as
erted.
He suggested that railroad capitali
alton be readjusted to equalize it with
ctual valuation of the property rep
making due allowance for |
quities. and that when this was done
he roads should be allowed to earn
efficient income to keep their stock
It par and to create surplus. The
after. he tentatively proposed, might
re allowed to amount to % per cent |
f the capital.
Railway Earnings Low.
This subject of railroad capitalization
nd the amount of railroad earnings
sceived further attention from the
n answer to questions by Senator S
ummins, Mr.. Thorn submitted figures /
rowing the net earnings Of the roads s
recent years. These figures show |
lat during the five years from 1905 /
1910 the average net earnings were
% per cent Of the net capitalization,
lille for the five years from 1910 to
10 the average was only 4.56 per
mt. The total earnings on the stock.
imputed by adding to the net oper- a
ing income the income from the Sc il
lrities owned and deducting bond in
rest, were for 1910, 100 per cent; N
+ 1911, GIT per cent; for 1912, 4.97 ,
II cent; for 1913, 594 per cent; for
IA, 4.O6 per cent; for 1915, 3.44 per ),
mt, thus showing an almost contin =
us decrease throughout this six year
riod. 1t was announced that Hal
I'd Erickson, formerly chairman Of Y
e wisconsin Railroad Commission, M
,uld submit more complete informa- in
N on this subject to the Committee tt
later date. al