The commercial. (Union City, Tenn.) 190?-193?, 1919-01-10
U. S. OWNERSHIP IS
OPPOSED BY R. S. LOVETT
McAdoo Aid Says "Pork Barrel" Con-
troll Is Grave Danger.


service and facilities, but not IN
rates, should be preserved, was voiced
in statement issued by Robert s
Lovett, when his resignation as di-
rector of the division of capital ex-
penditures of the Railroad Admins
tration became effective to-day.
After asserting that there is moth
ing so essential to the financial peace
and the commercial and industrial
welfare of this country as a definite
governmental railroad policy" Mr.
Lovett declared that the necessity for
exclusive national control, as against
State regulation, was now too obvious
for discussion and that 'the only
debatable question is whether such
control shall be thru Government
ownership or by exclusive Federal
regulation of private ownership"
FEDERAL REGULATION.
II believe in thoro regulation by
petition in service and facilities, with
power to check it whore it amounts
to an evil" he said. II should per-
NIT consultations subject to Govern
ment approval where the public
benefit would plainly be promoted,
particularly in the absorption Of fl
nancially weak lines of minor i'm
portance where by so doing the COM
munities dependent thereon could be
better served. But l would steadily
preserve competition between the
large systems and pursue policy of
widening the competitive areas be-
tween such large systems wherever
practicable. ......
In giving his reasons for opposing
Government ownership, Mr.. Lovett
asserted that "if we carefully analyze
tho relative merits of efficiency from
unification and the advantages from
competition in serving facilities, be-
lieve we will find that the latter
will be very much better as a ma
tional policy"
He added that he also objected to
Government ownership because the
opportunity it would offer "for pro-
noting political ambitions would be
a perpetual national scandal and ex-
pose the Government to serious fl
nancial burdens"
FEARS "PORK BARREL" SYSTEM.
Expressing the fear that "the rail-
road pork barrcP would in time
make the other pork barrels appear
Insignificant in comparison" Mr..
Lovett said:
Every politician would be almost
compelled to exert any political in
fuence possessed by him to provide
places for his supporters or improve
ments and facilities or rate adjust
ments desired by them. Each Con-
gressman would be pressed by all the
ambitious towns in his district for
ornate passenger stations or other
improvements, as ho is now pressed
for post offices, courthouses and other
public buildings; for additional and
unnecessary trains to please particu-
lar communities and for the con-
struction of now railroads, extensions
and branches"
Mr.. Lovett also declared that
"there are other objections to Gov
ernment ownership, such as the po-
litical power of the employees to or
ganize and control the railroads, and
the probable deterioration in the
ability and efficiency of executive
and administrative officers under the
scale of Government salaries in COM
petition with private business"
Consideration of any solution of
the problem involves the fundament-
al question of whether there shall or
shell not be competition" snid Mr..
Lovett.
"All will agree, l believe, that
competition in railroad rates is un-
wise and practically impossible. Com
petition in rates cannot exist with
out rebates, secret rates and other
kindred evils that make it intoler-
able. But competition in service and
facilities always existed until the be-
ginning of Federal control and has
really been responsible for the great
advance in the quality of railroad
service in this country. particularly
in recent years. Its elimination
would mean comparative stagnation.
PRIVATE WASTE.
Much is said of the waste Of rail-
road competition. Nearly everything
thus characterized is for the benefit
of the public. Undoubtedly there Is
some actual waste, but the amount