Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1918-01-04
President Wilson'S Statement On
Taking Over The Railroads.

nave cAeICibou tle powers over tne
transportation systems of the country
which were granted me by the act of
Congress of August. 1915. because it has
become imperatively necessary for me to
do so. This is war Of resources no less
than of men. perhaps even more than of
men, and it is necessary for the complete
mobilization Of our resources that the
transportation systems Of the country
should be organized and employed under
single authority and simplifed method
OF coordination, which have not proved
possible under private management and
control.
THE committee Of railway executives,
who have been cooperating with the Gov
eminent in this all-important matter, have
done the utmost that it was possible for
them to do; have done 1t with patriotic
zeal and with great ability; but there we're
difficulties that they could neither escape
nor neutralize.
Complete unity of administration in the
present circumstances involves upon occa-
sion and at many points a serious disloca-
ton OF earnings, and the committee was,
Of course, without power or authority to
rearrange charges or effect proper COM
pensations and adjustments of earnings.
Several roads which were willingly and
with admirable public spirit accepting the
orders of the committee have already suf-
fered from these circumstances and should
not be required to suffer further In mere
fairness to them the full authority Of the
Government must be substituted. Govern
ment itself will thereby gain an immense
increase of efficiency in the conduct of the
war and of the innumerable activities upon
which its successful conduct depends.
But nothing herein contained. expressed
or implied, or hereafter done or suffered
hereunder. shall be deemed in any way to
impair the rights of the stockholders, credi-
tors and other persons having interests in
said systems of transportation or in the
profits thereof to receive just and adequate
compensation for the use and control and
operation of their property hereby assumed.
Regular dividends hitherto declared.
and maturing interest upon bonds, deben-
lures and other obligations, may be paid
in due course and such regular dividends
and interest may continue to be paid until
and unless the said director shall from time
to time otherwise by general or special
orders determine; and, subject to the ap-
prevail Of the director, the various carriers
may agree upon and arrange for the re-
newal and extension of maturing obliea-
tons.
Except with the prior written assent
of said director, no attachment by mense
process or on execution, shall be levied on
or against any of the property used by any
Of said transportation systems in the con-
duct of their business as common carriers
but suits may be brought by and aSains,
said carriers and judgments rendered as
hitherto until and except so far as said
director may, by general or special orders
otherwise determine.
The public interest must be first served
and, in addition, the financial interests Of
the Government and the financial interest.
OF the railways must be brought under {
common direction. The financial opera
tons of the railways need not then inter
fere with the borrowings of the Govern
ment, and they themselves can be con
Quoted at greater advantage. Investor:
in railway securities may rest assured tina
their rights and interests will be as scrupu
lously looked after by the Government a,
they could be by the directors Of the sew,
eral railway systems.
Immediately upon the reassembline O
Congress | shall recommend that thes,
definite guarantees be given: First, O
course. that the railway properties will b,
maintained during the period of Fedora
control in as good repair and as complet,
equipment as when taken over by III,
Government. and. second. that the road.
shall receive net operating income eoua
in each case to the average net income O
the three years preceding June 80, 1917
and | am entirely confident that the Con.
eress will be disposed in this case, as II
others, to see that justice is done and full
security assured to the owners and credi.
tors of the great systems which the Gov
eminent must now use under its owl
direction or else suffer serious embarrass
ment.
THE Secretary Of War and are agreed
that, all the circumstances being taken
into consideration, the best results can be
obtained under the immediate executive
direction Of Hon. Vim. G. McAdoo. whose
practical experience peculiarly fits him fol-
the service and whose authority as Secre-
tary Of the Treasury will enable him to CO.
ordinate as no other man could the many
financial interests which will be involved
and which might. unless systematically
directed, suffer very embar- RAISING en-
tanglements.
THE Government Of the United States
is the only great Government now engaged
in the war which has not already assumed
control Of this sort. It was thought to be
in the spirit Of American institutions to
attempt to do everything that was neces-
sary through private MANAGEMENT. and. II
zeal and ability and patriotic motive could
have accomplished the necessary unifica-
ton Of administration. il would certoinly