Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-01-02
DECLARES
COMPETITION IS
VITAL TO ROADS
Former Head of Hartman
Lines Points Out Danger
From Pork Barrel and Pa
trOnage Method.
10y MORNING 1oussAl SPECIAL LEASED ~'Ts,


government ownership of railroads,
on the ground that competition in
service and facilities, but not in rates,
should be preserved, was voiced in a.
statement issued by Robert 5. LoVett'
when his resignation as director OF the
division of capital expenditures of the
railroad administration became effec-
tive today
After asserting that there is moth
ing so essential to the financial peace
and the commercial and Industrial
welfare of this country as a delllllte
governmental railroad policy MI.
Lovett declared that the necessity Tor
exclusive national control, as against
state regulation, was too obvious for
discussion and that 1.-The only debat-
able question is whether such control
shall be through government owner
ship or by exclusive federal regulation
of private ownership.
II believe in thorough regulation by
the national government Of all COM
petition in service and facilities, with
power to check it where it amounts to
an evil" he said 81 should permit
consultations subject to government
approval where the public benefit
larly in the absorption of financially
weak lines of minor importance where
by so doing the communities depend
ent thereon could be better served.
But | would steadily preserve compe-
tition between the large systems and
pursue a policy of widening the com
petitive areas between such large
systems wherever practicable"
Fears Pork Barrel.
In giving his reasons for opposing
government ownership, Mr.. Lovett as
serted that "if we carefully analyze
the relative merits of efficiency from
notification and the advantages from
connection in service facilities, ! be-
leye we will find that the latter will
be very much better as a national
policy." He added that "he also OBJ
ieoted to government ownership be-
cause the opportunity it would offer
for promoting political ambitions
would be a perpetual national scandal
and expose the government to serious
financial burdens"
EXPRESSING the fear that 1.-The rail-
road pork barrel would in time make
the other pork barrels appear insig-
nificant" Mr.. Lovett said
every politician would he almost
compelled to exert 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 ann
bilious towns in his district for ornate
passenger stations or other improve
ments, as he Is now pressed for post
offices, court houses and other pubic
buildings; for additional unnecessary
, trains to please particular communl-
ties and for the construction of new
railroads, extensions and branches,
Lower salaries Feared.
Mr.. Lovett also declared that "thcre
are other objections to government
ownership, such as the political power
of the employees TO organize and CON
troll the railroads, and the probable
| deterioration in the ability and effic-
| iency of executive and administrative
| officers under the scale of government
| salaries in competitor 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
! Mr. ] ovett.
/ "All will agree, I believe that com
| petition in railroad rates is unwise anc
practically impossible. Competition il
| rates cannot exist without rebates
! secret rates and other kindred eVil'
that make it intolerable. Put compe
tition in service and facilities alWay
existed until the beginning of fedor2
control. and has really been respon
sible for the great advance in tn
quality of railroad service in thi
country, particularly in recent years
It's elimination would mean compare
tive staenation.
much is said of the waste OF rail
road competition. Nearly evervthirt
thus characterized is for the benefi
If the nnbl'c Undoubtedly there i
some actual waste, but the amour
Of expense saved by unification is no
relatively great item. Moreover,
have no doubt that the rigid econo
miea enforced by keen supervision o
details under private management n
|. against the lax habits inherent II
public management and the create
freedom and extravagance in meth
DDS of spending government none
would much more than offset ever
year any possible saving from tn
elimination of expenses incident t
: competition.
"What seems to me as an obviou
objection to government ownership
: the very large financial undertaken
that would he involved. On Decem
. her 81. 1916, the total outstandin
. capitalization of all the railroads j
the United States amounted to $40.
67a,35O.501. OF course it would nc
4 Ne necessary for the government t
provide the entire amount of thi
huge investment at once, If the gov
eminent should be wiling to acquir
the property subject to existing mort
cages, but this would undoubtedl
add enormously to the value of tn
bonds outstanding. since buving SUI
iect to the mortgages, the bond
would in effect be guaranteed by tn
government"