The Robesonian., 1917-12-31

earnings equivalent to the average net
operating income Of each railroad in
the three-year period ending June 80,
1917. Railroad experts estimate that
this will cost the government next
year in the neighborhood Of $100,000,-
900, which can be raised in large part
by increased freights, if the inter-
State commerce commission grants
the roads application for the Is per
erWise it will be paid largely out of
the general government funds.
The interstate commerce commits
sion and other government agencies
which have to do with the railroads
will continue to perform their func-
tlons as heretofore, except that they
will be subject to orders of the direc-
tor of railroads. t
The President makes it clear that
his decision was not made because of
any failure on the part of the rail
roads to perform their whole duty
insofar as they could while hampered
as they were by legal restrictions.
The plan of control as outlined in
the proclamation and statement
leaves much unsaid as to details, but
the general scheme appears TO follow
closely the British system. In Eng
land, however, government freight is
carried free and the guaranteed earn
lngs require an enormous amount of
| money from government funds, while
in the United States the government
will pay for it's freight as in the past
and will stand it's part of increased
freight tariffs if they are found to
be necessary.
The Presidents statement follows:
81 have exercised the powers over
the transportation systems of the
country which were granted me by
the act Of Congress Of August, 1917,
because it has become imperatively
necessary for me to do SO. This is a
war of resources no less than of men,
perhaps even more than Of men, and
it is necessary for the complete mob
iliZation OF our resources that the
TRANSPORTATION systems of the country
should be organized and employed IN
der a single authority and a simplified
method of coordination which have
not proved possible under private
mana cement and control. The COM
mittee Of railway executives who have
been cooperating with the govern
ment in this all-important matter
have done the utmost that it was pos
sible for them to do; have done it with
patriotic zeal and with great ability
but there were difficulties that they
could neither escape nor neutralize
Complete unity of administration in
the present circumstances involves up
on occasion and at many points a Sc.
rious dislocation Of earnings and the
committee was, of course, without
] power or authority to re-arrange
4 charges or effect proper compensa
tions and adjustments of earnings
Several roads which were willingly
and with admirable public spirit, act
ing the orders of the committee, hav,
already suffered from these circum
stances and should not be required t,
suffer further. In mere fairness t.
them the full authority of the gov
ernment must be substituted. TIL
government itself will thereby gai
an immense increase in efficiency i
the conduct Of the war and of the in
Vulnerable activities upon which it
successful conduct depends.
Scrupulously Protect Investors.
"The public interest must be frs
se1yed and in addition the financial II
terests of the government and the
nancial interests of the railways mus
81 be brought under a common direction
The financial operations of the raj
ways need not then Interfere with tt
borrowings of the government ar
they themselves can be conducted ;
a greater advantage. Investors
railway securities may rest assure
that their rights and interests wi
be scrupulously looked after by tt
government as they could be by tt
directors of the several railways sy
IA TENS. Immediately upon the rea
sembling Of Congress I shall recon
= mend that these definite guarante
be given: First, of course, that tt
railway properties will be maintain'
during the period of federal contr
in as good repair and as compile
equipment as when taken over by II
government, and, second, that Il
roads shall receive net operating i
come equal in each case to the avera.
net income Of the three years prece
ing June 80, 1917; and | am entire
satisfied that the Congress will be di
posed in this case, as in others, to S
that justice is done and full securi
assured to the owners and credito