Dresden enterprise and Sharon tribune. (Dresden, Tenn.) 1907-1997, 1917-01-05

Authority, He CoHtsnos- nssSNs nas''
rond stooau should Represent Aottfa'
vsIus and 30 etabas 40 0O~eFvmMssss
Bonds.
washington, Dec. II. William D
Bryan. who startled the country ten
sears ago by advocating governments
ownership Of railroads, appeared De-
torn the Newiands Joint Committee on
Interstate Commerce last week in sup
oor4 Of the claim that the states should
ia allowed to retain authority over the
NAcuiataon OF all transportation lines
WITHIN their borders. Mr.. Bryan en-
uiatned 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-
Rfre government ownership" he ex-
Claimed, because I lean to the inof
v4duai Mea rather than to the Dllec-
tire idea; that is, believe that gov
eminent ownership is desirable only
@heS competition Is impossible"
Alfred P. Thorn. counsel to the Rail
way Executives Advisory Committee,
previously had presented before the
numbers Of the New1ands Committee
"a one 1t his reasons for urging bet
ter balanced and moro systematic reg
uiat4m Of railroads the argument that
Tits N the only alternative to govern
nana ownership. Calling attention to
the restrictions imposed upon the
transportation lines By conflicting state
MRS end regulations, to tho practical
cewsAtlon Of new construction and to the
tmtUssfhlity under existing conditions
u securing the new capital needed for
extensions and betterments OF railway
facilities, be warned the Congressman
that unless they provided a fair and
raHSnab44 system Of regulation that
would enable the railroads to meet the
growing needs Of the c0untrys buEt-
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
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 III
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. 4 would
like to see the stock Of a railroad, as
long as 1t Is in private hands, made as
substantial and as unvarying as the
value OF a government bond" he as
serted.
He suggested that railroad capitali-
zRtion 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 Is Der cent
Of the capital.
Railway Earnings Low,
This subject of railroad capitalization
and the amount of railroad earnings
received further attention from the
during its recent sessions,
In answer to questions by Senator
Mr., Thorn submitted figures
showing the net earnings of the roads
In recent years, These figures show
that during the FIVE years from 1905
to 1910 the average net earnings we're
5.25 per cent Of the net capitalization,
while for the five years from 1910 to
1915 the average was only 4.56 Der
cent. The total earnings on the stock,
computed By adding to the met oper-
ating incune the income from the &C.
cur1aes owned and deducting bond in.
terest we're for 1910, TOO per cent;
Tor 1911, GIT per cent; for 1912, 491
per cent; for 1918, 5.94 per cent, for
1914, 400 per cent? for 1915, ga per
cent, thus showing an almost contin.
nous decrease throughout this six year
period. 1t was announced that Hal.
enssa fn,.Inarror, eo.-.-n