The herald-advance. (Milbank, S.D.) 1890-1922, 1918-01-11

tie private Stlppci VIII De as carefully
served aud sa.eguardei as it is pos
sible TO serve and safeguard it in the
present extraordinary circumstances.
Wants Investors Protected.
While the present authority of the
executive offices for all purposes IF ad-
ministration. and while of course, all
private interest must for the present
give way to the public necessity, it is,
| am sure you will agree with me,
right and necessary that the owners
and creditors OF the railways, the hold.
ers Of the stocks and bonds, should re.
ceive from the government an unGuali-
lied guarantee that their properties
Will be maintained throughout the
period of federal control in as good
repair and as complete equipment AS
at present, and that the several roads
will receive under federal m~anarement
such compensation as is equitable and
just alike to their owners ANA to the
general public. l would suggest the
average net railway operating income
OF the three years ending June 80.
1917. | earnestly recommend that
these guarantees be given by appro.
pirate legislation and given as prompt
ly as circumstances permit.
Move Is Mere Justice.
! need not point out the essential
justice of such guarantees and their
great influence and significance as elc-
ments in the present financial and in
dustriai situation OF the country. In
deed, n of the strongest arguments
for assuming control OF the railroads
at this time is the financial argument.
1t is necessary that the values. of rail.
way securities should be justly and
fairly paid and that the large financial
operations every year necessary in
connection with the maintenance, OPP
Grafton and development or the roads,
should, during the period Of the war.
be wisely related to the financial OPP
| e~rations of the government.
Conserve Common Safety.
Our first duty is, OF course, TO con
serve the common interest and the
common 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 private inter
ests we disturb should be kept safe
from unjust injury, and it is OF the
utmost consequence to the government
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 tho federal
treasury, and no fundamental indus
necessarily impaired. In the hands OF
many small investors in the country,
as well as in national banks. in insur-
ancc companies, in saving banks, in
trust companies, in financial agencies
Of every kind, railway securities, the
total of which u n up to some $40.
600, 0O0, 900 or $l1 600, 900, 600. consti-
tute a vital part of the structure OF
credit. and the unquestione1 solidity
OF that structure must be maintained.
McAdoo Is Agreed Upon.
The secretary Of war and | easily
agreed that, in view of the nan com
pick interests which must be safe
guarded and harmonized, as well as
because Of his exceptional experience
and ability in this new field OF govern
mental action. William G. McAdoo.
was the right man to assume direct adj
ministrative control OF this new *
~ecutive task. At our request he coli
scented to assume the authority and
duties Of organizer and director gen.
eral Of the new railway administra.
ton. He has assumed those duties
and his work is in active progress.
1t Is probably too much to expect
that even under the unified railway ad-
ministration which will now be pos
sible, sufficient economies a be af-
fected in the operation Of the railways
to make it possible to add to their
equipment and extend their operative
facilities as much as the present ex-
tr%aordinary demands upon their use
will render desirable without resorting
to the national treasury for funds.
Congress Must Provide.
1t is not possible. 1t will OF course,
be necessary to resort to the con-
gress for grants Of money for that nur-
pose. The secretary OF the Treasury
will advise with your committees with
regard to this very practical aspect OF
the matter. For tho present, ! sug-
gest only the guarantees have indi.
Gated and such appropriations as are
necessary at the outset OF this task.
| take the liberty Of expressing the
hope that the congress may grant
these promptly and u~ngrudgingly. We
are dealing with great matters and
will, l am sure, deal with them greatly.