Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-07-14
Lsvett Advances
Sslatioa OF The
Railroad Problem

lNtioa 1offHtHs railroad problem" By
;No6eYt 6si11CvetE sBFH6i4Gnt. sof tals
;Unten f2ciAe yallfead for.
merry. bod -ef the division 81 capital
roadEadninistratien, made public here
yeaterday. included - q Fundamental
prineipie the necessity of legislation
th.. sas!, s!ys Railroad capital - bust
, II oonsrss. Win saaet the naesa-
sAFy laws 9tyaHs railroad capital .
business ehenee." aselared Judge
.aSs'' :, suas Ss.'s1 FAX = ia e ths ae ny
required to provide the Requisite rail-
road fatalities tor the future will be
forthcoming."
The. head Of the unaen Pacific de-
clarads that In his. opinion, the country
= aenftoHxedsswtth four contingencies:
fasAsquata andsspooY. service. govern
capital, or reasonable raks-fixtng by
. observation-disclosures, the latter pro,
viding Consideration Of the needs Of
the frame and the carrier, with the
right Of each carrier to keep what
ever profit it ean make out OF rates
70 estahlished, by good manasement.
Inent and sueooss in competing for
:buaineaa..ts El.@ i
REGARDING rats-making. Judge Low
cit maintained that the regulation pro-
vidad by oongreas "shouid require that
the rates be sufficient to enable the
oarrisst-tn provide the requisite aerv-
ice and facilitiaA protect existing in
vestmant md prov1de the new capital
.necesaFX in tha public interest q
advocated by the committee Of rail-
road executives and submitted to the
senate cornrnittas on interstate and
foreign commerce. \ Ia
Five Other Features
Judge Lovstt, likewise. favors five
other features Of the railroad commit
tee,s report ~ being remedial and
wise asa national railroad policy"
namely, compulsory federal incarpor-
alton. exclusive federal regulation of
and rates, the creation of
q department Of transportation in the
presidents cabinet the head OF which
would have power ito act quickly and
deal with emergencies" and modifica-
ton Of restrictions upon railroad con-
solidakions- and provision for the
merging of lines whenvin the public
interest.
"our RAILROAD. transportation sys-
tem." observes. Judge Iovett, which
is essentially national, should be res
cued from the irresponsible and con-
fltcting state agencies, and brought
under urlifornis.oontrol md regulation
IN the national interest, except as to
strictly local matters.
Without government ownership or
operation, the only reliance for rail
road revenue to support railroad cred
It must be upon the adoption by con-
EreSs OF q SOUND railroad policy in
volving absolute justice to railroad
capital and requiring specifically and
plainly that the rates to be fixed shall
~ aSsA~NA~t - Arahlo <hA ,No VpiANa 70
provide safe and adequate service. to
protect existing values and to attract
the naveacapital1 n~ecessary.in the pub
lie i~ntereet.":s s.. riaIes ,
Railroad investors, according to
Judge Lovett. are deserving - much
Of encouragement, liberal treatment
and appreciation as stockholders in
other enterprises with no public in
tArssta involved" ~. ~ =
No money except that devoted
purely TO ihenevolence is employed
moro Ia; the public interest or ID. en-
titled to mora. encouragement or fairer
treatment and consideration than that
which 70 invested in the construction
and Sdsvelnpment Of: railroad! facili-
a.. tha as IL Is . SSaf Ss6 hSy fhaasf 3 n nsre
introducing common sense into. some
ofsour theories. a~bout4railfoad capital
eOomptilsion Favored. -.
Judge Lovett said he favored ccm-
pulsory federal Incorporation 'because
then. the railroads would cease to be
mere; Creatures of the states" and
cease to. be s''tiad hand. and foot when
it comes TO the issue and sale. az stocks
and bonds" q. restriction that TOO
often threw them back upon short
term borrowing. With. dangerous and
often unfortunate conseQuences." - n
Exclusive federal regulation Of the
issue Of railroad securities, said Judge
Iovett, .is SO vital to railroad credit
and to the success, Of any system Of
regulation that may be. adopted that
ut must not be overlooked" Federal
regulation Of freight, and passenger
rates also, he thought imperative be-
cause Of the notorious" discrimina-
ton by many state railroad commits
sions. in favor. of their own citizen6
against citizens Of other. states. !.
Establishment Of q department Of
transportation with a secretary in the
Presidents cabinet was emphasized as
n~eedful.for the MASON that the rail-
road business. the largest single In
du6try in the United States next to
agriculture" II un~repfesanted in tho
xovsrnment ana without any friend
At court" such AN od1eial, Judge
Lovett said, would be able ITO meet
emergencies resulting from exception
al congestion In rtrahic or through
blockades in. transportation. BY quick
ly <nnobilizing. the nations. transporta-
ton resoureeesandf by the arbitrary
diversion, III need be- OF tranlc from
lines which cannot handle 1t to. lines
which can and BY other instant and
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