South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-07-22
R. R. CAPITAL
APPEALS FOR 4
BUSINESS CHANCE
Wants Congress to Enact Nee
eSsary Laws to Give Road
Heads Chance.

AtlAf Abl fltElF HEdQ OF the DIVISION I
OF capital expenditure Of the United I
states railroad administration. made /
public here today. included as I
fundamental principle the necessity /
OF legislation that will give railroad |
capital "a business chance"
If congress will enact the neces- /
sary laws giving railroad capital a
business chance" declared Judge
LOvett. Il believe that capital will
take a business risk and the money
required 10 provide the requisite
railroad facilities for the future VIII
DC forthcoming
The head of the Union Pacific de-
clared that In his opinion, the
country is confronted with four con-
tingencies. Inadequate and poor
service, government ownership. a
federal guaranty OF a reasonable re-
turn upon railroad capital. or rea-
sonable rate fixing by government
agency. the latter providing con
sideratiOn OF the needs Of the traf-
nc and the carrier. with the right
OF each carrier 20 Keep whatever
profit il can make out of rates so
esta blished. by good management.
good service. economy. wise invest
ment an dsuccess in competing for
business"
Wants Public Interest.
Regarding rate making, Judge
Lovett maintained that the regula-
ton provided by congress should
require that the rates be sufficient
10 enable the carriers 90 provide the
requisite service and facilities. pro
tect existing investments and pro-
vide the new capital necessary in
the public interest" as advocated by
the committee OF railroad executives
and submitted 20 the senate commit
tee on interstate and foreign COM
merce.
Judge Lovett likewise favors FIVE
other features Of the railroad com
mittee's report as being remedial
and wise as a national railroad
policy" namely: Compulsory federal
incorporation, exclusive federal reg
ulation OF securities and rates. the
creation OF department of trans
p6ftatiOn in the presidents cabinet.
the head of which would haze power
Ito act quickly and deal with emer-
gencies." and modification of re-
strictions upQ2 railroad cOnsoIida-
tons and provision for the merging
Of lnies when in the public interest.
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 reguIa-
ton in the national interest, except
as 10 strictly local matters.
Hard on Roads.
Without government ownership
or operation, the only reliance for
railroad revenue 70 support railroad
credit must be upon the adoption by
congress OF a sound railroad policy
involving absolute justice 10 railroad
capital and requiring specifically
and plainly that the rates 10 be
fixed shall be sufficient to enable the
carriers to provide safe and ade-|
quate service. 10 protect existing
vaIuese and 10 attract the new CAPT
tai necessary in the public interest"
Railroad investors. according 20
Judge Lovett. are deserving as much
OF encouragement liberal treatment
and appreciation as stockholders in
other enterprises with no public
interest involced."
NO money except that devoted
purely 20 benevolence IS employed
more in the public interest or is en-
titled TO more announcement or
fairer treatment and consideration
than that which is invested in the
construction and development OF
railroad facilities declared Judge
LOvett. who added that lit is about
time that we were introducing com
mon sense into some OF our theories
about railroad capital"
Want Federal Incorporation.
Judge Lovett said he favored
compulsory federal incorporation
because then the railroads would
cease 10 be mere creatures OF the
states" and cease to be tied hand
and foot when il comes 10 the issue
OF stocks and bonds" a restriction
that too often threw them back
upon short term borrowing with
dangerous and often unfortunate
consequences
Exclusive federal regulation or the
ISSUE Oh taAtEoau securities, SAID
Judge Lovett. is so vital 60 railroad
credit and 20 the success of any
system OF regulation that may be
adopted that "it must not be over
looked" Federal regulation Of
freight and passenger rates. also. he
thought imperative because OF the
notorious discrimination by many
state railroad commissions IN favor
OF their own citizens against citizens
OF other states
Esta Adjustment OF a department OF
transportation with a secretary in
the presidents cabinet was empha-
sized as needful for the reason that
the railroad business. the largest
single industry In the United states
next 20 agriculture. is unrepresent-
ed iE the government and without
any friend at court Such an Off
ciaI Judge Lovett said would be
able Ito meet emergencies result
ing from exceptional congestion I'm
traffic or through bIocksdes in trans
portation. by quickly modelling the
nations transportation resources