Arizona republican., 1918-12-03
PRESIDENTS MESSAGE
CONTINUED from Page Three


authorization that part of the program
which covers the building plans of the /
next three years. These plans have
been prepared along the lines and in
accordance with the policy which thl
congress established, not under the eX-
ceptional conditions of the war, but
with the intention of adhering to a
definite method of development for
the navy. l earnestly recommend the
uninterrupted pursuit Of that policy.
It would clearly be unwise for us to
attempt to adjust our programs to
future world policy as yet undeter-
mined.
Railroads Concern Him
"The question which causes me the
greatest concern is the question of the
policy to be adopted towards the rail-
roads | frankly turn 10 you for coup-
sci upon it. l have no confident judg-
ment of my own. 1 do not see how any
thoughtful man can have who knows
anything of the completely of the
problems 1t is a problem which must
be studied studied Immediately ana
studied without bias or prejudices.
Nothing can be gained by becoming
partisans of any particular plan of
settlement
1T was necessary that the admins
tration Of the railways should be taken
over by the government as long as the
war lasted 1t would have been impos-
sible, otherwise, to establish and carry
through under a single direction the
necessary priorities of shipments. 1t
would have been impossible, otherwise,
to combine maximum production at the
factories and mines and farms with the
rv.1, 10 fplr
the products to the ports and markets;
impossible to route troop shipments
and freight shipments without regard
to the advantage or disadvantage of the
roads employed; impossible to subor-
dinate, when necessary, all questions of
convenience to the public necessity;
impossible to give the necessary finan-
cial support to the roads from the pub
| lie treasury. But all these necessities
have now been served, and the question
| is: What is best for the railroads and
! for the public in the future?
Exceptional circumstances and eX-
| ceptional methods of administration
were not needed to convince US that the
railroads were not equal to the i'm
mense tasks Of transportation imposed
upon them by the rapid and continuous
| development of the industries of the
country. We knew that already. And
we knew that they were unequal TO 1t,
partly because their full cooperation
was rendered impossible by law and
! their competition made obligatory, so
| that it has been impossible to assign
to them severally the traffic which best
could be carried by THERE respective
| lines in the interest of expedition ard
national economy.
Peace by Spring
1--WE may hope, / believe, for the fer
NAL conclusion of the war by treaty by
the time spring has come. The Il
months to which the present control Of
the railways is limited after formal
proclamation Of peace shall have been
made will run at the farthest, l take ii
for granted. only to the January OF
1921. The full equipment of the rail-
ways which the federal administration
had planned could not be completed
within any such period. The present
law does not permit the use of the reve-
| nueS of the several roads for the exc
cution of such plans except by forma
contract with their directors, some OF
whom will consent, while some will not
and therefore does not afford suffi-
cient authority to undertake improve
ments upon the scale upon which i
would be necessary to undertake them
Every approach to this Difficult
subject matter of decision brings u:
face to face, therefore, with this I'M
answered question: What is right tina
we should do with the railroads, in th'
interest of the public and in fairness t
their owners?
Let me say at once that l have NJ
answer ready. The only thing that il
perfectly clear to me is that it is no
fair, either to the public or to the own
!. ers of the railroads, to leave the ques
. ton unanswered, and that it will pres
entity become my duty to relinquisl
control of the roads. even before tn
expiration of the statutory period, ur
less there should appear some clea
prospect in the meantime of legis
lative solution. Their release woul,
at least produce one element of a so!u
ton, namely. certainty and Il quicl
! stimulation of a private initiative.
, Railroads Are Problem
Il believe that it will be serviceabl
for me to set forth as explicitly a
possible the alternative courses tina
lie open to our choice. We can simpl
+ release the roads and go back TO tn
' old conditions of private management
( unrestricted competition, and multi
form regulation by both state and fed
. eral authorities; or we can go to III
e opposite extreme and establish com
e plete government control, accompanied
{ if necessary, by actual government
A ownership; or we can adopt an inter
e mediate course of modified priVat
v control, under a more modified an
= affirmative public regulation and undo
h such alterations OF the law as will per
:, NIT wasteful competition to be avoide
e and a. considerable degree Of unifica
ton to be effected. as, for example, b
: regional corporations under which III
e railways of definable area would be j
e effect combined in single systems.
d 'The one conclusion that am read
= to state with confidence is that
o would be disservice alike to the coun
4 try and to the owners Of the railroad
3 to return to the old conditions unmodi
= fled. Those are conditions of restrain
d without development. There is nothin
affirmative or helpful about then
What the country chiefly needs is tha
N all its means of transportation shoul
be developed its railways, its water
ways, its highways and its countryside
q roads. Some new element of polio
is therefore, is absolutely necessary
er necessary for the service of the publ
m necessary for the release of credit
he those who are administering the raj
IS ways, necessary for the protection