The Washington times., 1919-07-14
LOVETT URGES FAIR
RAILROAD SOLUTION

NEW YORK, July 14-suggestions
To members Of Congress for "a sound
solution Of the railroad problem" by
Robert s. Lovett. former president OF
the Union Pacific railroad system, for
merly head Of the division Of capital
expenditures Of the United States
railroad Administration, made public
mere, included as a fundamental prin-
elple the necessity of legislation that
VII give railroad capital "a business
III Congress will enact the neces-
s4ry laws giving railroad capital q
business chance" declared Judge
LoVett, II believe that capital will
take q business risk and the money
required to provide the requisite rail-
road facilities for the future will be
forthcoming"
The head Of the Union Pacific de-
elared that, in his opinion, the country
Is confronted with four contingencies:
inadequate and poor service, govern
ment ownership, q Federal guaranty
or q reasonable return upon railroad
capital, or reasonable rate-fxing by
Government agency, the latter pro-
vtding consideration Of the needs Of
the traffic and the carrier, with the
right OF each carrier to keep what
ever profit it can make out Of rates
30 established. by good management,
ment and success in competing for
business"
Fer Five Remedial Measures.
Regarding rate making. Judge Low
EFT maintained that the regulation
provided by Congress should require
that the rates be sufficient to enable
the carritrs to provide the requisite
: service and facilities, protect existing
Investments and provide the new cap
ltal necessary in the public interest"
as advocated by the committee Of
railroad executives and submitted to
the Senate Committee on Interstate
and Foreign Commerce.
Judge Lovett, likewise, favors I'VE
other features of the railroad COM
mittee's report as being remedial and
wise as a national railroad policy"
namely, compulsory Federal incor-
poration, exclusive Federal regula-
ton OF securities and rates, the crea- |
ton OF a department of Transports
ton in the Presidents Cabinet, the !
head Of which would have power "to |
act quickly and deal with emergen- |
cies," and notifications Of restric- |
lions upon railroad consultations and |
provision for the merging of lines |
"Our railroad transportation sys- /
tenn" observes Judge Lovett, which |
is essentially national, should be res
cued from the irresponsible and con-
ficting State agencies, and brought /
under uniform control and regulation /
Of the national interest, except as to
strictly local matters.
Absolute Justice.
Without Government ownership or
operation, the only reliance for rail-
road revenue to support railroad
credit must be upon the adoption by
Congress of a sound railroad policy
involving absolute justice to railroad
capital and requiring specifically and
plainly that the rates to be fixed shall
be sufficient to enable the carriers to
provide safe and adequate service, to
protect existing values and to attract
the new capital necessary in the pub
lie interest"
'.Since the creation Of the Inter
state Commerce Commission, the only
concern Of the Government, as re-
fected by legislation and commission
action. has been to keep down the
revenues, prevent discrimination and
generally chastise railroad manage
ment," he added.
Railroad investors, according to
Judge LoVett, are deserving as much
Of encouragement, liberal treatment
and appreciation as stockholders in
other enterprises with no public in.
terest involved"