Le MeschaceÌbeÌ. [volume] ([Lucy] La.) 1853-1942, 1918-01-12

everything that is 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 dislo-
Gated as little as possible, and the pub
lie may rest assured that the interest
and convenience of the private shipper
will be as carefully served and safe
guarded as it is possible to serve and
safeguard it in the present extraordi-
nary circumstances.
Proposes Positive Guarantees.
While th" present authority of the
executive sufficed for all purposes of
administration, and while, of course,
all private interests must for the pres
ent give was to the particular 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 as
good repair and as complete equip
ment as at present, and that the sew
eral roads will receive under federal
management such compensation as is
equitable and just, alike to their own.
ers and to the general public. would
suggest the average net railway OPP
Grating income of the three years end
ing June 80, 1917. 1 earnestly recon-
mend that these guarantees be given
by appropriate legislation, and given
as promptly as circumstances permit.
I need not point out the essential
justice of such guarantees and their
great influence and significance as,
element in the present financial and
industrial situation of the country. In
deed, one of the strong arguments for
assuming control of the railroads at
this time is the financial argument.
It is necessary that the values of rail-
way securities should be justly and!
fairly paid and that the large finan-i
cial operations every year necessary
in connection with the maintenance,
operation and development of the
roads should, during the period of war,
be wisely related to the financial OPP
erations of the government
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 it Is an
obligation of public conscience and of
public honor that the private interests
we disturb should be kept safe from
unjust injury, and it is of the utmost
consequence to the government itself
!, nat 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
Industrial values should anywhere be
unnecessarily impaired.
Must Maintain Solidarity.
In the hands of many small inxes-
tors in the country, as well as in ma
tional 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 vital
part of the structure of credit, and the
unQuestioned solidity of that structure
must be maintained.
The secretary of v ar, and I easily
agree that, IL 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, the Hon. William G.
MeAdoo, was the right man to assume
direct administrative control of this
new executive task. At our request he
consented to assume the authority and
duties of organizer and director gen.
eral of the new railway administra-
ton. He has assumed these duties
and his work is in active progress
It is probably too much to expect
that even under the unified railway
administration which will now be pos
sible, 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 ex-
demands upon their use
will render desirable without resorting
to the national treasury for the funds.
II 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 adj
wise with your committees with re-
gard to this very practical aspect OF
the matter. For the present, suggest
only the guarantees / have indicated
and such appropriations as are neces-
sary at the outset of this task l take
the liberty of expressing the hope that
he congress may grant these prompt
y and ungrudgingIy. We are dealing
with great matters and win, am sure,
ieal with them greatly.