Daily capital journal. (Salem, Oregon) 1903-1919, 1918-01-04


barrassed
"It was in the true spirit of America
and it was the right that we should
first try to effect the necessary unfit
cation under the voluntary action of
those who are in charge OF the great
railway properties; anu we did try II.
The directors Of the railways respond
ed to tine need promptly anu gracIUusly.
Executives Did Their Best.
"Tne group OF railway executives
who were charged with the task OF ac-
tual coordination and general direction
performed their difficult duties with
patriotic zeal and marked ability as
was TO nave been expected, ana nd, 1
believe, everything that it was pos
sible for them to do in the circum-
stances Ii | have taken the task out
of their hands it has not been because
OF any derehction or failure ON their
part, put only because there were some
things which the government can do
and private management cannot. We
shall continue to value most highly the
advice and assistance of these gentle
men and l am sure we shall not find
them WllnnOlulnB IL.
cit had become Enthusiastically plain
that only under government adminlstra-
tion can the entire equipment of the
several systems of transportation be
fully and unreservedly thrown into a
common service without injurious dis
elimination against particular proper
ties. Only under government admins
tration can absolutely unrestricted and
unembarfassed common use be made of
all tracks, terminals, terminal facilities
equipment of every kind. Only under
that authority can new terminals be
constructed without regard to the re-
quirements of limitations of particular
roads. But under government admins
tration all these things will be possible
not instantly, but as fast as practical
difficulties which cannot be merely
conjured away, give way before the new
management.
Few Changes as Possible.
"The common administration will be
carried out with as little disturbance of
the present operating organizations and
personnel of the railways as possible.
Nothing will be altered or disturbed
which it is not necessary to disturb. We
are serving the public interest and safe
guarding the public safety, but we are
also regardful of the interest of those
by whom these great properties are
owned and glad to avail ourselves OF
the experience and trained ability OF
those who have been managing them.
cit is necessary that the transpor-
tatiCn of troops and of war materials,
of food and of fuel and Of everything
that is necessary for the full mobiliza-
tion 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 ana
the the normal industries and CONNER
ciaI life of the country should be IN
terferred with and dislocated as little
as possible and the public may rest as
sured that the interest and convenience
of tbe private shipper will be as care
fully served and safeguarded as it is
to serve and safeguard it in
the present extraordinary circumstances
Guarantee to Stockholders.
"While the present authority of the
executive suffices 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 |
md necessary that the owners and ere
litors of the railways, the holders OF
their stocks and bonds, should receive /
from the government an unquallf1ed
guarantee that their properties will be
maintained throughout the period OF
federal control in as good repair and
complete equipment as at present and
hat the several roads will receive un-
Ter federal management such compen-
,ation as is equitable and just alike
70 their owners and to the general pub
ic. / would suggest the average net
.ailway operating income Of the three
-ears ending June 30, 1917.
- earnestly recommend that these
guarantees be given by appropriate leg
Station and given as promptly as cir
.Umstanees permit.
4 need not point out the essential
Justice of such guarantees and their
reat influence and significance as ele-
nents in the present financial and in
lustrial situation of the country. In
Iced. one of the strong arguments for
ssuming control of the railroads at this
ime is the financial argument. 1t is