Arizona republican., 1917-12-27

stances involves upon occasion and at many points a serious dislocation of earnings, and the committee was, of course. without power or authority to re-arrange charges or effect proper compensations and adjustments of earnings. Several roads which were willingly and with admirable public spirit accepting the orders of the con- mittee have already suffered from these circumstances and should not be re- quired to suffer further In mere fair ness to them the full authority of the government must be substituted. The government itself will thereby gain an immense increase of efficiency in the conduct of the war and of the inunum- erable activities upon which it's sue cessful conduct depends.
 The public interest must be first served and in addition, the financial i interests of the government and the financial interests of the railroads must | be brought under a common direction. 1 The financial operations of the rail- ways need not then interfere with the borrowings of the government and they themselves can be conducted at a greater advantage. Investors in rail- way securities may rest assured that their rights and interests will be as scrupulously looked after by the gov ernment as they could be by the direc- tors of the several railway systems. Immediately upon the re-assembling of congress I shall recommend that the definite guarantees be given:
 First, of course, that the railway properties will be maintained during the period of federal control in as good
 
 when taken over by the government and second, that the roads shall receive a net operating income equal in eacf case to the average net income of the three years preceding June 30, 1917, and I am entirely confident that the con- gress will be disposed in this case, as in others to see that justice is done an6 full security assured to the owners anC creditors of the great systems which the government must now use under it's own direction or else suffer seriou. embarrassment.
 The secretary of war and I art agreed that, all the circumstances be ing taken into consideration the bes results can be obtained under the i'm
 mediate executive direction of the Hon William G. McAdoo, whose practica experience peculiarly fits him for tn service, and whose authority as secre , tary of the treasury will enable hin , to coordinate as no other man coul, , the many financial interests which vii
 be involved and which might, unIes
 systematically directed, suffer very em
 barrassing entanglements.
 The government of the Unite
 States is the only great governmen , now engaged in the war which has no
 already assumed control Of this sor It was thought to be in the spirit c
 American institutions to attempt to d
 everything that was necessary throug
 private management, and if zeal an
 ability and patriotic motive could hay
 accomplished the necessary unificatio
 of administration, it would certainl
 have been accomplished; but no zeal C II ability could overcome insuperable oh stacles and I have deemed it my dut
 to recognize that fact in all candor no . that it is demonstrated and to LIS q without reserve the great authority re
 posed in me. A great national neces
 sity dictated the action and I wa " therefore not at liberty to abstai y from it.
 n tSigned) WOODROW WILSON,