The Raymer enterprise., 1918-12-05

plans have been prepsrsd along the
lines and In accordance With the pol.
Icy which the Congress established.
not Under the sxoeptional conditions
Of he war. but with the intention Of
adheYing to definite method Of dsvel-
opment Of the navy. earnestly rec
6mmsnd the uninterrupted pursuit Of
that policy. It would clearly be un-
wise for u to attempt to adjust our
programs to future world policy a.
yet undetermined.
Railroad Problem es Great Moment.
The question which causes me the
greatest concern is the question Of the
policy TO be adopted toward the rail.
roads. ] frankly turn to you for coun-
sci upon II. have NO confident judg,
ment Of my own. do not see how any
thoughtful man can have who knows
anything Of the complexlty Of the
problem. 1t 10 problem which must
be studied. studied Immediately and
studied without bias or prejudice.
Nothing can be gained by becoming
partisans Of any particular plan Of set.
tlement.
IT was necessary that the adruinis.
tration OF the railways should be TAX.
en- over by the government SO long as
the war lasted. It would have been Inn
possible otherwise to establish and
carry through under a single direction
the necessary prioritiss Of shipments.
1t would have been impossible other
wise to combine maximum production
at the factories and mines and farms
with the maximum possible car supply
to take the products to the ports and
markets; impossible to route troop
shipments and freight shipments with
out regard TO the advantage or disad
vantage Of the roads employed; impos
sible to subordinate. when necessary
all questions Of convenience to the
public necessity; impossible to give
the necessary financial support to the
roads from the public treasury. Blu,
all these necessities have now been
served. and the question Is. what Ii
best for the railroads and for the pub
lie In the future.
Exceptional circumstances and ex
cepti0nal methods of administration
were not needed to convince US thai
the railroads were not equal to the
immense tasks Of transportation i'm
posed upon them by the rapid and
continuous development Of the indus
tries Of the country. We knew tina,
already. and we knew that they were
unequal to It partly because their full
cooperation was rendered impossible
by law and their competition made
obligatory. so that 1t has been impos
sible to assign to them severally tht
traffic which best could be carried b,
their respective lines in the Interest
OF expedition and national economy
| Treaty by Spring.
I'VE may hope. believe, for th'
formal conclusion Of the war b.
treaty by the time spring has come
The twenty-five months to which thu
present control Of the railways Is lin
tied after formal proclamation o
peace shall have been made will rul
at the farthest, take It for granted
only to the January Of 1921. The ful
equipment Of the railways which thu
federal administration had planned
could not be completed within an!
such period. The present law doe
not permit the use Of the revenues o
the several roads for the execution o
such plans except by formal contrac
with their directors, some OF whom
will consent, while some will not. ant
therefore does not afford sufficien
authority to undertake Improvement
upon the scale upon which it woult
be necessary to undertake them.
Every approach to this difficul
subject matter Of decision brings III
face to face, therefore, with this un
answered question: What is It righ
that we should do with the railroads
In the interest Of the public, and II
fairness to their owners.
Let me say at once that | have NJ
scswer ready. The only thing that i
perfectly clear to me is that 1t Is no
fair either to the public or to the own
ers OF the railroads to leave the ques
tion unanswered, and that II will pres
emily become my duty to relinquisl
control Of the roads, even before TIL
statutory period, unless there shoul'
appear some clear prospect In tn
meantime of legitimate solution
Their release would at least pre-
duce one element Of solution
namely, certainty and quick stimu
lation Of private Initiative
81 believe that 1t will be serviceabl
for me to set forth as explicitly as poi
sible the alternative courses that II
open to our choice. We can slmpl
release the roads and 90 back to th
old conditions Of private management
unrestricted competition and multi
form regulation by both state and fec
eral authorities. or we can 90 to tn
opposite extreme and establish con
plete government control, accompanie