The Washington times., 1917-12-27
PRESIDENT GIVES
EXPLANATIONOF
RAILROAD ACTION

simultaneously with the issuance
of the proclamation whereby the rail-
roads were taken over, President Will
son issued the following statement in
explanation of the step:
Il have exercised the powers over
the transportation systems of the
country which were granted me by
the act of Congress OF August, 1915,
because 1t has become imperatively
necessary for me to do so. This IL
a war of resources no less than men,
perhaps even more than Of men, and
It is necessary for the complete
mobilization OF our resources that the
transportation systems OF the coun-
try should be organized and employ
ed under a single authority and a
slmplified method OF coordination
which have not proved possible under
private management and control The
committee OF railway executives who
have been cooperating with the Gov
eminent in this all-important matter
have done the utmost that 1t was
possible for them to do; have done
II with patriotic zeal and with great
ability; but there were difficulties
that they could neither escape nor
neutralize.
Lack Of Unity.
Complete unity Of administration
in the present circumstances involves
upon occasion and at many points a
serious dislocation Of earnings, and
the committee was, of course, with
out power or authority to re-
arrange charges or effect proper
earnings. Several roads which were
willingly and with admirable public
spirit accepting the orders OF the
committee have already suffered from
these circumstances and should not
be required to suffer further. In
mere fairness to them the full Au
thority 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 innumerable activi-
ties upon which its successful con-
uuct depends.
The public interest must be FIRST
served and. in addition, the financial
interests OF the Government and the |
financial interests OF the railways
DTOuknl unoeT a common oil
rection. The financial operations OF
the railways need not then interfere |
with the borrowings of the Govern
ment, and they themselves can be |
conducted at a greater advantage. In
vestors in railway securities may
rest assured that their rights and |
interests will be as scrupulously |
looked after by the Government as
they could be by the directors OF the /
several railway systems.
VIII Go Before ConEreEa.
Immediately upon the reassembling
of Congress l shall recommend that
these definite guarantees be given:
First. OF course, that the railway
will be maintained during |
the period OF Federal control in as
good repair and as complete equip
ment as when taken over by the Gov
eminent, and, second, that the roads |
shall receive q net operating income
equal in each case to the average net
income Of three years preceding June
80, 1917, and l am entirely confident
that the Congress will be disposed in
this case. as in others, to see that jus
to the owners and creditors of the
great systems which the Government
must now use under its own direction
or else suffer serious embarrass-
ment.
The Secretary OF War and are
agreed that. all the circumstances be-
Ing taken into consideration, the best
results can be obtained under the
executive direction OF the
Hon. William G. McAdoo. whose prac-
teal experience peculiarly hts him
FOR the service. and whose authority
~ Secretary OF the Treasury will en-
able him TO coordinate a. no other