The midland journal. (Rising Sun, Md.) 1885-1947, 1918-01-11

1 Wiz AAtCAC vi knOoC ny w lkOlil tAC1N
great properties. are owned and glad
to avail ourselves of the experience
and trained ability Of those who have
been managing them. 1t is necessary
that the transportation of troops and Of
| war materials, of food and of fuel and
Of everything that is necessary to the
full mobilization Of the energies and
resources of the country should be first
considered, but it Is clearly in the pub
lie interest also that the ordinary &C.
tivities and the normal industrial and
commercial life of the country should
be interfered with and dislocated as
little as possible, and the public may
rest assured that the interest and con,
venience of the private shipper will
be as carefully served and safeguarded
as it is possible to serve and safe
guard it in the present extraordinary
circumstances.
Wants Investments Guaranteed.
while the present authority Of the
legislature sufices for all purposes of
anu W DllCt VI OO0A oOt
all private interests must give way to
the public necessity, it is, am sure you
will agree with me. right and neces-
sary that the owners and creditors
of the railways, the holders of their
stocks and bonds, should receive from
the government an unqualified guaran-
tee that their properties will be main
tanned throughout the period of federal
control in as good repair and as COM
plete equipment as at present. and
THAT the several roads will require UNI
der federal management sucn compen-
sation as is equitable and just alike
to their owners and to the general
public. would suggest the average
net railway operating income of the
three years, ending June 30, 1917. l
earnestly recommend that these guar
antees be given by appropriate legis-
lation, and given as promptly as cir
cumstances permit.
Il need not point out the essential
justice of such guarantees and their
great influence and significance as ele-
ments in the present financial and eco
nomic situation of the country. In
deed, 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 rail-
ways securities should be justly and
fairly protected, and that the large
financial operations every year neces-
sary in connection with the mainte-
nance, operation and development of
the roads should during the period of
the war be wisely related to the finan-
cial operations of the government.
To Prevent Unjust Injury.
"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 also
an obligation Of public conscience and
of public honor that the private IN
terests we disturb should be kept safe
from unjust injury and 1t is OF the
utmost consequence to the government
itself that all great financial opera
lions should be stabilized and co-ordl-
mated with the financial operations OF
the government. No borrowing should
run athwart the borrowings of the fed
eral Treasury, and no fundamental IN
dustrial values should be anywhere I'M
necessarily impaired In the hands OF
MANY thousands of small investors in
the country, as we'll as in national
banks, insurance companies, in savings
banks, in trust companies, in financial
agencies of every kind, railway secur-
tiles the sum total of which runs up
to some ten or eleven thousand mil
lions. constitute vital part of the
structure Of credit, and the unques-
toned solidity Of that structure must
be maintained.
Why McAdoo Was Chosen.
ssThe Secretary of War and l easily
agreed that, in view of the many COM
plex interests which must be safe
guarded and harmonized, as well as be-
cause Of his exceptional experience and
ability in this new field OF govern
mental action, the Hon. William G. Nc
Adoo was the right man to assume d.
rect administrative control Of this new
executive task At our request he con-
sented to assume the authority and
duties of organizer and director gen.
eral Of the new Railway Administra-
Mon. He has assumed those duties
and his work is in active progress.
AT is probably too much to expect
mat even under the unified railway
administration which will now be pos
sible sufficient economies can be eff
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-
traordinary demands upon their use
will render desirable without resorting
to the National Treasury for the funds.
If it is not possible It will, OF course,