The Parker post., 1917-08-04
.IaYAN AGAINST
OWNERSHIP BY
The GOVERNMENT
Gives NeW|andS Committee His
Views on Railroad Control
COMPETITION PREFERABLE.


Authority, He Contends--Thinks Rail-
road Stocks Should Represent Actual
Value and Be Stable as Government
Bonds.
Washington, Dec. II. - 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 1 cannot say that 1 de-
sire government ownership" he ex-
planned, "because l lean to the indi-
tive idea; that is, believe that gov
ernment ownership is desirable only
where competition is tmpossible.'
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
his is the only alternative to govern
inent ownership. Calling attention to
he restrictions imposed upon the
transportation lines by conflicting state
avs and regulations, to the practical
cessation of new construction and to the
,mpOssibility under existing conditions
# securing the new capital needed for
extensions and betterments Of railway
acilities, he warned the Congressman
hat unless they provided fair and
reasonable system Of regulation that
would enable the railroads to meet the
rowing needs Of the cOuntry's bust
uess the national government would
re compelled to take over the owner
ship Of the lines with all the evils at
endant upon such a system.
Preservation of Competition.
Mr.. Bryan, on the other hand, holds
hat the further extension Of federal
authority over the railroads would be
/ step in the direction Of government
ownership. He advanced the view that
he Capitalization Of control in the
lands Of the national government
would impose too great a burden upon
he regulating body, would offer strong
nmptation to railroads to interfere In
,Oitics and would encourage the gen.
raj movement toward Capitalization
power in the federal government at
.ie expense Of the states. He said that
did not object to consultations Of
,iIgoad lines SO long as they did not
'~troy competition, that he knew Of
complaint against great railway
tens because Of their size and that
believed that the preservation Of
upetition was the test to be applied
n consultations.
Regulation of Securities.
IT, Bryan declared himself In favor
rational regulation of railway stock
bond issues, but added that he saw
reason why that should exclude the
IS from acting on the same sub
rs to state corporations. Il would
= to see the stock of railroad, as
K as it is In private hands, made as
tstantial and as unvarying as the
lue Of government bond" he as
rted.
1e suggested that railroad capitan-
;tion be readjusted to equalize 1t with
'tnal valuation of the property rep
sented. making due allowance for
lities, and that when this was done
q roads should be allowed to earn
:iicient income to keep their stock
par and to create a surplus. The
er, he tentatively proposed, might
allowed to amount to % per cent
be capital.
Railway Earnings Low.
Is subject of railroad capitalization
the amount Of railroad earnings
we'd further attention from the