The Fayette falcon. (Somerville, Tenn.) 190?-current, 1918-01-11

ests and safeguarding the public safe
ty, but we are also regardful CT tho
interest of those by whom these great
properties are owned, and glad to avail
ourselves of the experiences and the
trained ability Of those who have beeh
managing them. It is necessary that
the transportation Of the troops and
of war materials, of food and Of fuel,
and of everything that ia necessary
for the full mobilization of the en-
ergies and resoureer Of the country,
should be first considered; but It ia
clearly In the public interest also that
the ordinary activities 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 convenience of the pri-
vate shipper will be as carefully
served and safeguarded as II is posi-
BILE to serve and safeguard It in the
present extraordinary circumstances.
Sldetraek Private Interest
while the present authority of the
executive suffices for ell purposes OF
administration, and while, Of course,
all private interest must for the pres
ent give way to the public necessity.
it is, | 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 guarantee that their
properties will be maintained through
out the period Of federal control In as
good repair and as complete equip
ment as at present, and that the sew
eral roads will receive, under federal
management, such compensation as is
equitable and just alike to their own
ers and to the general public. | would
suggest the average net railway op-
Grating income of the three years end
Ing June 30, 1917, | earnestly recon-
mend that these guarantees be given
by appropriate legislation, and given
as promptly as circumstances permit.
II need not point out the essential
Justice Of such guarantees and their
great influence and significance as
elements in the present financial and
industrial situation of the country. In
deed, one of the strong arguments for
assuming control of the railroads az
this time is the financial agreement.
II necessary that the values Of rail-
way 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 II.
nancial operations Of the government.
War lie First Duty Of Nation.
''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 1t is
also an obligation of public conscience
and of public honor that the private
interests we disturb should be kept
safe from unjust injury, and It is of
the utmost consequence, to the gov
eminent itself that all great financial
operations should be stabilized and CO.
ordinated with the financial opera
tons of the government. No borrow
ings should run athwart the borrow
ings OF the federal treasury, and no
fundamental industrial values should
anywhere be unnecessarily impaired.
In the hands of many thousands of
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, constitute
vital part of the structure of credit
and the unquestioned solidity of that
structure must be maintained.
"The secretary OF war and I easily
agreed that, in view of the many com.
pick interests which must be safe
guarded and harmonized, as we'll as
because of his exceptional experience
and ability in this new field Of gov
ernmental action. the Hon. William G.
McAdoo was the right man to assume
direct administrative control Of this
new executive task. At our request,
he consented to assume the authority
and duties of organizer and director
general OF the new railway admins
tration. He has assumed those duties
and his work is in active progress.
ut is probably too much to expect
that. even under the unified railway
administration, which win now be pos
sible, sufficient economies can be eff.
fected in the operation Of the rail-
ways to make 1t possible to add to
their equipment and extend their OPP
erative facilities as much as the pres
ent extraordinary demands upon their
use will render desirable, without re-
sorting to the national treasury for
the funds. II 1t is not possible, It will.
of course. be necessary to resort to
the congress for grants OF money for
that purpose. The secretary Of the
treasury win advise with your com.
mittees with regard to this very prac-
teal aspect OF the matter. For the
present suggest only the guarantees
have indicated. and such appropria-
lions az are necessary at the outset Of
this task. ! take the liberty Of ex.
pressing the hope that the congress
may grant these promptly and I'M
grudgingiy. We are dealing with great
matters. and will. an sure, deal with
them greatly"
washington-The Germans are TAX