The Celina Democrat. (Celina, O. [Ohio]) 1895-1921, 1918-01-18

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everything that is necessary for the
full mobilization OF the energies ant
resources OF the country, should bC
first considered, but 1t 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 dis
turbed as little as possible, and the
public may rest assured that the inter
est and convenience of the private
shipper will be as carefully served and
safeguarded as II is possible to serve
and safeguard 1t in the present ex-
traordinary circumstances.
To Keep Lines In Good Repair.
"While the present authority of the
executive suflices for all purposes OF
administration and while, of course, all
private interests must for the present
give way to the public necessity, II 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 re.
ceive from the government an unqual-
flied guaranty that their properties will
be maintained throughout the period of
federal control in as good repair and
as complete equipment as at present,
ando that the several roads will receive
under federal management such com.
pensatlon as is equitable and just alike
to their owners and to the general
public.
II would suggest the average net
railway operating income Of the three
years ending June 80 1917. earnest
ly recommend that these guarantees
be given by appropriate legislation and
given as promptly as circumstances
permit"
"DeaI Justly With Securities"
II need not point out the essential jus.
tice Of such guarantees and their great
influence and significance as elements
in the present financial and Industrial
situation of the country. Indeed, one of
the strong arguments for assuming con-
troll Of the railroads at this time is the
financial argument. 1t is necessary
that the values Of railway securities
should be justly and fairly paid and
that the large financial operations ev-
cry year necessary in connection with
the maintenance, operation and devel-
opment Of the roads should, during the
period of the war, be wisely related to
the financial operations of the govern
ment.
"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 an
obligation Of public conscience and of
public honor that the private interests
we disturb should be kept safe from
unjust injury, and 1t Is of the utmost
consequence to the government itself
that all great financial operations
should be stabilized and co-ordinated
with the financial operations Of the
government. No borrowing should run
athwart the borrowings of the federal
treasury and no fundamental indus
trial values should anywhere be un-
necessarily impaired. In the hands of
many small investors in the country, as
well as in national banks, In insurance
companies, in savings banks, in trust
companies, in financial agencies of ev'
cry kind, railway securities, the sum
total Of which runs up to some $10,-
OO0OO0OOO or ,000,000,000, consti-
tute a 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
plex interests which must be safe
guarded and harmonized, as well as |
because of his exceptional experience
and ability in this new field of govern
mental action, Hon. William G. Nc
Adoo was the right man to as
sumo direct administrative control Of
this new executive task. At our re-
quest he consented to assume the au-
thority and duties of organizer and di-
rector general Of the new railway ad
He has assumed those
duties and his work is in active prog
reSs.
May Need Treasury Grants.
'Tt is probably too much to expect
that even under the unified railway ad-
which will now be pos
sible sufficient economies can be eff
rected in the operation Of the rail-
ways to make it possible to add to
heir equipment and extend their Op-
erative facilities as much as the pres
ent extraordinary demands upon their
use will render desirable without re-
sorting to the national treasury for
he funds. If it is not possible, it will,
If course, be necessary to resort to
he congress for grants Of money for
hat purpose. The secretary of the
reasury will advise with your commit
zee with regard to this very practical
lspect of the matter. For the pres
mt 1 suggest only the guarantees
AVE indicated and such appropria-
ions as are necessary at the outset
f this task. l take the liberty Of ex-
ressing the hope that the congress
nay grant these promptly and un>
We are dealing with great
matters and will, am sure, deal with
hem greatly"
A company has been formed in Por- I
,oo1 +o dovaIoD bvdroa1nptriO nOyer =