Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-01-05

necessary for the full mobilization Of
| the energies and resources OF the
| country should be first considered, but
! it is 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 dislocatec as little as pos
sible and that public may rest as
sured that the interest and convent
ence of the private shipper, will be as
carefully served and safeguarded as
| it is possible to serve and safeguard
it in the present extraordinary circum-
/ stances.
| While the present authority of tile
! executive suttices for all purposes OF
administration and while, of course,
| all private interests must for the
! present give way to the public neces-
! sity, it is, / am sure You will agree
| with me. right and necessary that the
| owners 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 a.
i good repair and as complete equipment
! as at present. and that the several
: roads will receive under federal man
! agement such compensation as is equit :
! able and just alike to their owners
and to the general public. l would sug
! sest the average net railway operat-
! ing income of the three years ending
! June 90. 1911. l earnestly recommend
| that these guarantees be given hy
| appropriate legislation and given as
! promptly as circumstances permit.
! Values Should Be Protected
! | need not point out the essential
! justice Of such guarantees and their
great influence and significance as ele-
/ lnents in the present financial and in
, dustrial situation Of the country. In
deed one Of the strong arguments ior
t assuming control Of the railroads at
! this time is the financial argument il
! is necessary that the values of rail
| way securities should be justly and
! fairly protected and that the large fl
nancial operations every year 1eces-
( sary in connection with the mainten-
ance. operation and development Of tie
! 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 safe
| ty and to make certain that nothing
| stands in the way Of the successful
! prosecution of the great war for liber-
! ty and justice. but it is an obligation
! of public conscience and the public
! honor 1,at the private interests we dis
! turh should be kept safe from unjust
! injury, and it is of the utmost conSe-
! qucnce TO the government itself that
al great financial operations should he
, established and co-ordinated with tile
/ financial operations of the government.
! No borrowing should run athwart TIE
. borrowings of the federal treasury, and
no fundamental industrial values
: should anywhere be unnecessarily inn
! paired.
! In the hands of many thousands Of
small investors in the country, as well
: rs 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
a vital part of the structure of credit
and the unquestioned solidity of that
The secretary OF war easily agreed
tiat in view of the many complex in
Lerests which must be safeguarded
and harmonized. as well as because Of
! his exceptional experience and ability
! in this new field of governmnt action.
. til Hon. William G.. McAdoo was the
! right man to assume direct admins
( tratiVc control Of this new executive
! task. At our request he consented to
/ assume the authority and duties of or
ganiZer and director general of the
! new railway administration. He has
assumed those duties and his work is
] in active progress.
/ 1t is probably too much to expect
/ that even under tine unified railway
administration which will now be pos
/ Sible sufficient economies can be effect
! cd in the operation of the railways to
! make it possible to add to their equip
! ment and extend their operative ia
/ cilitieS as much as the present extra
| ordinary demands upon their use will
I render desirable without resorting to
! the national treasury for the funds,
! If it 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 will al
! wise with Your committees with regard
! ia this Very practical aspect of the
matter. For the present, | suggest
! only the guarantees I have indicated
and such appropriations as are neces-
sary at the outset Of this task ! take
the liberty OF expressing the hope that
+ the Congress may grant these prompt
! ly ana unsrudging!y. We are dealing
! with great matters and will, am sure.
( deal with them greatly
Administration Railroad Bill