New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-02
LOvett Points
TOPeril inU s..
Rail Ownership
Favors Federal Regulated
Control as the Only Other
Course Open to the Nation

II believe that there is nothing so
essential to the financial peace and the
| commercial and industrial welfare of
this country rs a definite railroad
policy" said Robert s. Lovett in a
statement issued yesterday, the day
upon which his resignation as director
of the division Of capital expenditures
of the National Railroad Admnistra-
tion became effective
Mr.. Lovett expressed the hope that
with the war ended Congress would
quickly find it possible to decide upon
wise and permanent policy. But he
declared there we're only two courses
open-a return to private ownership,
under Federal control only, eliminating
all state interference or monopoly
under Cover iment owasrt.i;p, II which
case, he said, he feared there would be
created another Pork Barrel" in COM
parison with which the rivers and har-
bors bill, the public buildings bill and
all others would sink into insignif-
canoe.
Between the two Mr.. Lovett said, his
own choice was service under private
ownership, governed by q policy of
Federal control which, while recogniz-
| ing that competition in rates was i'm
practicable, would not eliminate COM
petition in service, but would at the
same time prevent a renewal Of strife
between shippers and carriers, and the
further pyramding Of labor troubles
, and costs.
Calls Commissions Failure
"l take it for granted" says the
statement, chat the failure Of the
present dual and conflicting state and
interstate commission systems has
been demonstrated.
at satisfied neither investors nor
shippers. and failed to provide the
requisite transportation at the time Of
evitably means q renewal OF the STRIFE
| between shippers and carriers over
rates; between employers and employees
over wages, and between different COM
munities over preferential rate ad
! iustments, with each backed more or
lees by local regulating authorities;
and failure finally to meet the growing
needs of the country for transporter
ton facilities, since the necessary cap
, ital will not be Forthcoming. I have
I hoped that Immediately following the
war, it would be possible for Congress
TO decide upon and enact legislation
establishing wise and permanent
policy.
"The necessity for exclusive national
control as against conflicting state
regulation seems now too obvious for
serious discussion; and the debatabe
question is.whether such control shall
be through government ownership or
by exclusive Federal regulation or
private ownership
reconsideration Of any solution Of the
railroad problem involves the funda-
mental question whether there shall
or shall not be competition. Answer
to this determines very largely the
! kind Of plan to be adopted.
| Rate Competition Unwise He Says
! "All will agree, I believe. that com
petition in railroad rates is unwise
and practically impossible. Competi-
tion In rates cannot exist without re-
Dates, secret rates and other kindred
evils tnst make it intoierabc. But
competition in service and facilities
aiways existed until the beginning of
rcoerai control and has really been
responsible for tho great advance in
the quality Of railroad service in this
country, particularly in recent ycars.
behave strongly in competition in
service and facilities An the dominant
principle to govern our arilroad policy
IL means constant and persistent prog.
ress in improvements Of roadway and
! equipment, in the comforts and com
yeniences Of transportation. in consid-
cradle trcatmentaof the public. in the
quantity and quality OF service. and
progress in every feature Of transpor-
tation.
"Itg elimination would mean com.
| psratiye stagnatioD, would check enter
| prise and initiative and would remove
| the inspiration for many OF the con.
yenicncss and facilities which are most
| appreciated by our people. ! should re
| gard 1t AZ o. national misfoYtupe TO