Bisbee daily review., 1919-01-02
BELIEVES IN REGULA LAT|ONS BUT r FAVORS COMPETITION
Former Director of Division of Capital Expenditures De sires to Perpetuate Compet- tive Service and Facilities
CBy Review Leased Mre)


 NEW YORK, Jan. 1.-Opposition to government ownership of railroads, on the ground that competition in service and facilities, but not in rates, should be preserved, was voiced in statement issued by Robert s. Lovett, when his resignation as director of the division of capital expenditures of the railroad administration became effective today.
 After asserting that there is noth- ing so essential to the financial peace and the commercial and industrial welfare of this country as a definite governmental railroad policy" Mir Lovett declared that the necessity for exclusive national control, as against state regulation, was too obvious for discussion, and that the only debat able question is whether such control shall be through government owner ship or by exclusive federal regula- tion under private ownership
 Believes in Regulation
 'T believe in thorough regulation by the national government of all com
  power to check it where it amounts to an evil" he said. l should permit competition subject to government az proval where the public benefit would plainly be promoted, particularly in the absorption of financially weak lines Of minor importance where by so doing the communities dependent thereon could be better served. But l would steadily preserve competition between the large systems and pur- sue a policy of widening the competi- tive areas between such large systems wherever practicable" In giving his reasons for opposing government ownership, MT. LOvett as serted that If we carefully analXze the relative merits of efficiency from private control and the advantages from competition in service facilities, l believe we will find that the latter will be very much better as national policy"
 He added that he also objected to government ownership because it of fers opportunity for political scandal and exposes the government to se- rious financial burdens
 Railroad Fork Barrel'
 Expressing the fear that the rail roads pork barrel would in time make the other pork barrels appear insignificant in comparison Mir. Lov- ett said
 Every politician would be almost compelled to exact any political influ- ence possessed by him to provide places for his supporters or improve ments and facilities or rate adjust ments desired by them. Each congress man would be pressed by all the ambi- tious towns in his district for ornate passengers stations or other improve ments. as he is now pressed for post offices. court houses and other public buildings: for additional and unneces- sary trains to please particular com munities and for the construction of new railroads, extensions and branches"
 Has Other Objections
 Mir. Lovatt also declared that there are ether objections to government ownership. such as the political power of the employees to organize and con trol the railroads, and the probable deterioration in the ability and effici- ency of executive and administrative officers under the scale of government salaries in competition with private business"
 Consideration of any solution of the railroad problem involves the fun damental question of whether there shall or shall not be competition" said Mir Lovett.
 "An will agree. I believe, that com petition in railroad rates is unwise and practically impossible. Competi- tion ia rates cannot exist without re- bates. secret rates and other kindred evils that make it intOlerable. But competition in service and facilities always existed until the beginning of government control and has really been responsible for the great advance in the quality of railroad service in this country. particularly in recent years. Ils elimination would mean comparative staguatiOn.
 Expense Theory Exploded
 Much is said of the waste of rai,- road competition. Nearly everything tbns characterized is for the benefit of. the public. Under this system there is some actual waste. but the amount of expense saved by unific1tion is not relatively a great item. Moreover. ! have no doubt that the rigid econom- ies enforced by keen supervision of details under private management as against the lax habits inherent in pub lie management and the greater free dom and extravagance in methods Of spending government money would much more than offset every year any