Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1917-01-05
6lvss newlands Committee His
Views on Railroad Control.
COMPETITION PREFERABLE.
Federal Regulation Should Not BE Al
lowed 10 Exclude Exercise Of Stats
Authority, He contends-Thinks Rail-
road Stocks Should Represent Actual
vslOs and De sisbls "a Government
Bonds.

| Washington, Dec. II. - william j
Bryan. who startled tho country ten
years ago by advocating government,
ownership OF railroads. appeared be
fore the Newlagds 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 al transportation lines
within their borders. Mr.. Bryan ex-
planned that he had long regarded gov
eminent ownership as inevitable. but
only because or railroad opposition 30
effective regulation.
Against Government o~nsr.hip.
Personally ! cannot say that | do
sire government ownership" he er-
planned. 'becadse lean to the lndl-
vidusl idea rather than TO the collcc-
hve idea; that Is. believe that gov
eminent ownership IL desirable only
where competition is impossible"
Alfred y. Thorn. counsel TO the Rail
way Executives Advisory Committee
previously had presented before the
members OF the Newlands Committee
a. one OF his reasons for urging a bet
ter balanced aud more systematic reg
ulation OF railroads the argument that
this Ia the only alternative to govern
ment ownership. Calling attention 10
the restrictions imposed upon the
transportation lines by conflicting state
laws and regulations. to the practical
cessation OF new construction and 10 the
imposslbility under existing conditions
of securing the new capital needed for
extensions and betterments Of railway
facilities. he warned the Congressman
that unless they provided a 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 10 take over the owner
ship OF the lines with all the evils at
tendsnt upon such a system.
Preservation Of Composition.
Mr. Bryan, on the other hand. holds
that the further extension OF federal
authority over the railroads would be-
4 step In the direction OF government
ownership. lie advanced the view that
he Capitalization OF control In the
hands Of the national government
would impose too great burden upon
ho regulating body. would otrer strong
emptation TO railroads 10 interfere In
politics and would encourage the gen
sral movement toward Capitalization
u power In the federal government At
he expense OF the states. He said that
,e did not object to consultations OF
lines so long as they did not
iestroy competition. that he knew OF
10 complaint against great railway
ystems because OF their size and that
he believed that the preservation Of |
was the test 10 be applied |
o all consultations.
Regulation Of Securities.
Mr.. Bryan declared himself In favor /
u national regulation OF railway stock |
Ind bond issues but added that he saw
10 reason why that should exclude the 4
tates from acting ON the same sub I
ect as 10 state corporations. Il would /
Ike TO see the stock Of railroad. as
ong as II Is in private hands, made as
and "a unyarying as the
'alue OF government bond" he as
erted
lie suggested that railroad capital
alton be readjusted to equallze Il with
ctuai valuation OF the property rep
esented. making due allowance for
quities. and that when this was done
he roads should be allowed 10 earn
income 90 keep their stock
{ par and 10 create surplus The
,tter. he tentatively proposed might
. allowed to amount 10 % per cent
: the capital
Railway Earnings Low.
This subject OF railroad capitalization
nd the amount OF railroad earnings
,celved further attention from the
during it's recent sessions
\ answer 70 questions by Senator
ummlns Mr.. Thorn submitted figures
lowing the ne; earnings Of the roads
recent years These figures show
,at during the ave years from 1905
1910 the average net earainSs were
Is per cent 0f the net capitalization.
hile for the ave years from 1910 20
rs the average WAS only 456 per
at. The total earnings on the stock.
imputed by adding 20 the net oper-
ing income the income nom the Sc
:Iifies owned and deductiug bond In
rest. were for 1910. TOO per cent:
Y 1911. 6.i7 per cent. for 1912. 49T
r. cent: for 1913. 5Dt per cent; for
"a. 400 per ceos; for 1913. 3.fs per
mt. thus showing an almost contln-
,ps decrease throughout this six year
.rlod. II was announced that Hal.
nj Erickson, formerly chairman OF :
e Wisconsin Railroad Commission.
ould submit more complete informa.
pa on this subject TO the Committee
/. fasas t.fs