The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1918-01-04

protected and that the large financial
operations every year necessary in
connection with the maintenance, OPP
Grafton and development of the roads
should, during the period of the war,
be wisely related to the financial
operations of the government. Our
first duty is Of course to conserve the
common interest and the common
safety, and to make certain that moth
ing stands In the way of the success
full prosecution for liberty and justice,
but it is an obligation Of public con-
science and public honor that the
private interests we disturb should be
keput safe from unjust injury and it
is Of the utmost consequence Il the
government itself that all great financ-
ial operations should be stabilized and
co-ordinated with the financial opera
tons of the government.
mo borrowing should run athwart
the borrowings of the federal treas
ury and no fundamental industrial
values should anywhere be unnecess-
arily impaired. In the hands Of many
thousand Of small investors in the
country as well as in national banks
in 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 $4,000 100000 or 81 200, 00o,-
900 constitute a vital part of the struc-
ture of credit and the unquestioned
solidity of that structure must be main
tanned.
Agreed on MeAdoo.
1.-The secretary Of war and easily
agreed that, in view of the many COM
pick interests which must be safe
guarded and harm onized as we'll as be-
cause Of his exceptional experience
and ability in this new field of gov
eminent action, the Honorable Will
lam 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 duty of organizer and
director general of the new railway
administration. He has assumed those
duties and his work is IN active prog
ress.
ct is probably too much to expect
that even under the unified railway ad-
ministrations which will now be poss-
ible, sufficient economies can be ef-
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 extra
ordinary demands upon Their use will
render desirable, without resortfng to
the national tresury for the funds. If
It Is not possible 1t win. of course, be
necessary to resort to congress for
grants Of money for that purpose.
"The secretary Of the treasury will
advise with your committees with re-
gard to this very practical aspect of
the manner. For the present I sug-
, gest only the guarantees l have IN
dicated 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 ungrudgirgly, We
are dealing with great matters and
will, am sure, deal with them
greatly"
To Pay Net Income.
The admin.stra bill for government
operation OF railroads proposes that
ton at an annual rate as near as
possible to the net operating income
for the three years ending June 30,
1917,
The bill also would appropriate
$500 600, 600 to be used as revolving
fund" with the excess earnings of the
roads for the operation of the law.
The bin is entitled, "A bin to pro-
vide for operation of transportation
systems while under federal control,
for just compensation Of their owners
and tor other purposes"
Section gives the President au-
thority to agree with the roads the
compensation they shall receive, fix
ing the amount as nearly equal to
roads average net railway operating
income for three years ending June 80,
1917: 1t provides how the net income
shall be computed, and also for de-
pTeciatioa and maintenance
Section 2 gives the President power