Middletown transcript. [volume] (Middletown, Del.) 1868-current, 1918-01-12

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 anu
resources of the country should be nrst
but it is clearly in the pub
lie interest also that the ordinary &C
tivities and the normal industrial ana
commercial life of the country shouid
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 safeguardeo
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
administration, and while, OF course
all private interests must give way 70
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, ana
that the several roads will require un-
der federal management sucn compen-
sation as is equitable and just alke
to their owners and to the general
public. I would suggest the average
net railway operating income OF the
three years ending June 80, 1917. !
earnestly recommend that these guar
antees be given by appropriate iesls-
lation, and given as promptly as CIR
cumstances permit.
81 need not point out the essential
Justice Of such guarantees and their
great influence and significance as eie-
ments in the present financial and eco
nomic situation of the country. IN
deed, one of the strong arguments 1o'
assuming control of the railroads al
lTis time is the financial argument. 1t
is necessary that the valves OF rail-
ways securities should be justly ano
fairly protected, and that the large
financial operations every year neces
sarv in connection with the malnte'
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 wal
for liberty and justice, but it IS alse
an obligation of public conscience ane
If nublic honor that the private IN
terests we disturb should be kept saft
from unjust injury and it is OF tht
utmost consequence to the government
itself that all great financial ope:a
lions should be stabilized and co-oro'
mated with the financial operations 0
the government. No borrowing s"cui'
RIM athwart the borrowings Of the led
oral Treasury, and no fundamental III
dustrial values should be anywhere un
necessarily impaired. In the hands
manv thousands of small investors u
the country, as well as in natlcna
hanks. insurance companies, IN savihs
hanks. in trust companies. in flnanc;a
agencies of every kind, railway secu'
tiles the sum total of which runs U
to some ten or eleven thousand I'll
lions. constitute a vital part OF n
structure of credit, and the unique:
toned soliditv of that structure mus
be maintained.
Why McAdoo Was Chosen.
.The Secretary Of War and I easii
agreed that, in view Of the many con
MEX interests which must be SAT-
guarded and harmonized. aswell as D.
Icause of his exceptional experience an
ability in this new field OF govern
, mental action. the Hon. William G. M
Adoo was the right man to assume q
) rect administrative control OF TINS ne
executive task. At our request ne CO..
r sented to assume the authority an
, duties of organizer and director gel
t eral of the new Railway Admlnlstr
5 tion. He has assumed those dutl'
1 and his work is in active progress.
! 1T is probably too much to expe
l. that even under the unified rallWs
= administrator which will now be pc
4 sible sufficient economies can. be
fected in the operation Of the railwa.
to make it possible to add to the
eouipnent and extend their operati
facilities as much as the present G
. traordinary demands upon their
- will render desirable without resortll
q to the National Treasury for the funt
6. If it is not possible it will, OF cour'
;. he necessary to resort to the COngre
:. for grants of money for that purpo'
!. The Secretary Of the Treasury Will
" wise with your committee with resa
Al to this very practical aspect OF the M
Il ter For the present, suggest or
Is the guarantees l have indicated a
1T such appropriations as are Hecessa
q at the outset of this task. take
=, ,;hor.r ~ ...~ecsing :he hope .hat
"a Cor-re.. r>sv grant these prompt
y aT,' ,-.-- ri i~'ngly We are Ceall
:. with eros: matters, and VIII,
ID SIRE. tea! with them greatly"
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