Clearwater Republican. [volume] (Orofino, Idaho) 1912-1922, 1917-01-05

/road Stocks Should Represent Actual
I Value and Be Stable as Government
Bonds.
Washington, Dec IL. william J.
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
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 l cannot say that | de-
sire government ownership" he ex-
planned, because l lean to the indi-
vidual idea rather than to the collec-
tive idea; that Is ! believe that gov
eminent ownership Is desirable only
where competition is impossible"
Alfred P. Thorn, counsel to the Rail
way Executives Advisory Committee.
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
the restrictions imposed upon the
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
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 country's bust
ness the national government would
he 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
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 In
politics and would encourage the gen
eral movement toward Capitalization
of power I'm the federal government a
the expense of the states. He said thai
he did not object to consultations oil
railroad lines so long as they did no
destroy competition, that he knew OF
no complaint against great railwa,
systems because of their size and tina
he believed that the preservation O
competition was the test to be applied
TO all consultations.
Regulation Of Securities.
Mr. Bryan declared himself in favo
of national regulation of railway stocl
and bond issues but added that he say
no reason why that should exclude til
states from acting on the same sui
ject as to state corporations. Il woul
like to see the stock of railroad. a
| long as 1t is in private hands, made o
substantial and as unvarying as tn
value of government bond" he as
serted.
He suggested that railroad capital
II = -
actual valuation of the property rel
resented, making due allowance fO
equities. and that when this was don
the roads should be allowed to ear
sufficient income to keep their stoc
at par and to create a surplus. TIL
latter, he tentatively proposed. migf
be allowed to amount to % per cen
Of the capital.
Railway Earnings Low.
| This subject of railroad capitaliZatio
and the amornt of railroad earning
received further attention from til
committee during its recent session
In answer to questions by Senate
/ Cummins, Mr.. Thorn submitted figure
showing the net earnings OF the road
IN recent years. These figures sho
hat during the five years from i9t
| 70 1910 the average net earnings wei
I.25 per cent of the net capitalization
! while for the five years from 1910 I
1918 the average was only 456 pt
| cnt. The total earnings on the stool
/ computed by adding to the net ope
/ lting income the income from the s
| urities owned and deducting bond ii
terest. were for 1910, 100 per cen
for 1911. GIT per cent: for 1912. As
per cent; for 1913. 5.94 per cent; Il
1914, 4.06 per cent: for 1918. 3.44 p,
cent. thus showing an almost contil
! uous decrease throughout this six We;
period 1t was announced that Ha
ford Erickson, formerly chairman
the Wisconsin Railroad Commission
would submit more complete In form
tion on this subject to the Commute
at a later date.
-.