Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1917-01-12
BRYAN AGAINST
OWNERSHIP BY
THE GOVERNMENT
elves New|ands Committee His
Views on Railroad Control
COMPETITION PREFERABLE.

GUmrclllIUM P!tf.iA3!c.
Federal Regulation Should Not Be Az
lowed to Exclude Exercise Of State
Authority, He contends-Thinks Rail-
road Stocks Should Represent Actual
Value and Be Stable as Government
Bonds.
Washington. william D.
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
mort 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
srnment ownership as inevitable, but
only because Of railroad opposition to
effective regulation.
Against Government Ownership.
PERSONALLY l cannot say that ! de
olre government ownership" he ex-
planned, because / lean to the indi-
vidual idea rather than to the collec-
tive idea; that is. l 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
% 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
1mpossibility under existing conditions
q securing the new capital needed fo,i
extensions and betterments 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 couhtry's bust
1sss the national government would
- compelled to take over the owner
GAlp Of the lines with al the evils A.
tnndant upon such system.
Preservation q Competition.
Mr.. Bryan, on the other hand, holds
hat the further extension OF federal
authority over the railroads would be
Z step In the direction Of government
ownership. He advanced the view that
~ rehabilitation Of control In the
hands Of the national government
would impose too great burden upon
- regulating body, would Offer strong
tomptatiOn to railroads to interfere in
polittcs and would encourage the gen.
eEal movement toward GENERALIZATION
r power ia the federal government at
- expense Of the states. He said that
~ did not object to cancellations. of
railroad lines SO long ~ they did not
destroy competition, that he knew OF
- complaint againet great railway
syptems because Of their size and that
~ believed that the preservation Of
competition was the test to be applied
- Ill consultations.
Regulation d Securities.
Mr.. Bryan declared himself in favor
- national regulation OF railway stock
Gnd bond issues. but added that he saw
- reason why that should exclude the
01ntes from acting ON the same sub
9ect % to state corporations. II would
Ike to see the stock Of Z railroad, az
long as II II In private hands, made al
substantial and as unvarying as tn
value OF q government bond" he as
serted.
He suggested that railroad capital
sation be readjustei to equalixe It witt
actual valuation Of the property rep
resented, making due allowance fol
equities. and that when this was done
- roads should be allowed to earn
Gudacient income to keep their stool
at par and TO create a surplus. The
hitter. be tentatively proposed. nigh
be allowed to amount to Is per cen
u the capital.
Railway Earnings Low,
This subject of railroad capitalization
aAd the amount Of railroad earning
1oceived further attention from tn
eemmittee during it's recent sessions
n answer to questions by Senate
Oummins. Mr.. Thorn submitted figure
showing the net earnings Of the road
= recent years. These figures SHOW
tAat during the ave years from 100
- 1910 the average net earnings wer
10 per cent Of the net capitalization
while for the Ave years from 1910 t
1o16 the average was only 4.56 pc
cent The total earnings on the stock
computed by adding to the net oper
a41ng income the income from the se
eulities owned and deducting bond in
terest, were for i1iG, ?.ee per cent
~ 1911, ali per cent; for 1912, 40
~ cent; for 1913, 5.94 per cent: TO
1o14. A.O6 Per cent; for 1915, S.A pc
can't thus showing an almost cOnti-
uous decrease throughout this six yee
DG1od. It was announced that Ee