Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1918-01-04


ests must for the present give way
to the public necessity, it is, l am
sure. you will agree with me,
right and necessary that the own
ers and creditors Of the railways,
the holders of their stocks and
bonds, should receive from the
government an unqualified guar
antee that their properties will be
maintained throughout the period
of federal control in as good re-
pair and as complete equipment
as at present, and that the sew
eral roads will receive under fed
eral management such compensa-
ton as is equitable and Just alike
to their owners and to the general
public. I would suggest the aver
age net railway operating income
of the three years ending June
30, 1917. l earnestly recommend
that these guarantees be given by
appropriate legislation and given
as promptly as circumstances will
permit.
Finance is Big Part.
1 need not point out the essen
tial justice Of such guarantees and
their great influence and signifi-
canoe as elements in the present
financial and industrial situation
of the country. Indeed, one of the
strong arguments for assuming
control of the railroads at this
time Is the financial argument. 1t
is necessary that the values of
railway securities should be just
ly and fairly paid and that the
large financial operations every
year necessary in connection with
the maintenance, operation and
development of the roads should,
during the period of the war, be
wisely related to the financial op-
erations of the government. Our
first duty is, of course, to conserve
the common interest and the COM
mon safety, and to make certain
that nothing stands in the way Of
the successful prosecution of the
great war for liberty and justice,
but it is an obligation of public
conscience and Of public honor
that the priyate interests we dis
.turbsshould be kept safe from un-
Just injury. and It Is ofst119sdt-
most consequence to the govern
ment itself that all great financial
operations should be stabilized
and coordinated with the financial
operations of the. government. No
borrowing should run athwart the
borrowings Of the federal treas
ury, and no fundamental indus
trial values should anywhere be
unnecessarily impaired. In the
hands Of many small investors in
the country, as we'll as in national
banks, in insurance companies, in
savings banks, in trust companies,
in financial agencies of every kind,
railway securities, the sum total
of which runs up to some ten or
eleven thousand millions, consti-
tute a vital part of the structure
of credit, and the unquestioned
solidity of that structure must be
maintained.
McAdO0 Right Man.
The secretary of war and I
easily agreed that, in view of the
many complex interests which
must be safeguarded and hamon-
lied, as we'll as because of his ex-
ceptional experience and ability in
this new field of governmental ac-
ton, the Hon. William G. McAdoo
was the right man to assume d.
rect administrative control of this
new executive task. At our re-
quest he consented to assume au-
thority and duties of organizer and
director general the new railway
administration. He has assumed
these duties and his work is in
active progress.
May Ask for Money.
1t is probably too much to ex-
pect that even under the unified
railway administration which will
now be possible, sufficient econ
omies can be. effected in the oper-
alton of the railways to make it
possible to add to their equip
ment and extend their operative
facilities as much as the present
extraordinary demands upon their
use will render desirable without
resorting to the national treasury
for funds. II 1t is not possible, it
will, of course, be necessary to re-
sort to the congress for grants Of
money for that purpose. The Sec
rotary of the treasury will advise
with your committees with regard
to this very practical aspect of the
matter. For the present, I suggest
only the guarantees ! have indi-
Gated and such appropriation as
are necessary at the outset OF this
task. l take the liberty OF ex-
pressing the hope that the con-
gress may grant these promptly
and ungrudgingly. We are deal
ing with great matters and will, /
am sure. deal with them gently.