American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1918-01-08

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safeguard it In The present extraor-
binary circumstances.
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, it
is, l am sure you will agree with me,
right and necessary that the owners
and creditors of the railways, the hold
ers of their stocks and bonds should
receive from the government an un-
qualified guarantee that their proper
ties will be maintained throughout the
period of federal control in as good
repair and complete equipment as at
present and that the several roads will
receive under federal management such
compensation as is equitable and just
alike to their owners and to the gen.
eral public. 1 would suggest the aver
age net railway operating income Of
the three years ending June 80, 1917.
Asks Guarantees.
II earnestly recommend that these
guarantees be given by appropriate leg
islation and given as promptly as cir
cumstances permit.
81 need not point out the essential
justice of such guarantees and their
great influence and significance as ele-
ments in the present financial and in
dustrial 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 railway
securities should be justly and fairly
protected and that the large financial
operations every year necessary in con-
nectiOn with the maintenance, opera
tiOn and development of the roads
should, during the period of the war,
be wisely related to the financial oper-
atiOns 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 lib
erty and justice, but it is also an obi
CATION of public conscience and of pub
lie honor that the private interests we
disturb should be kept safe from un
. just injury and it is of the utmost
, consequence to the government itsell
, that all great financial operations
should be stabilized and co-ordinatet
, with the financial operations of the
, government.
"NO borrowing should run athwari
t the borrowings of the federal treasury
? and no fundamental industrial value:
2 should anywhere he unnecessarily i'm
? paired. In the hands of many thou
sands of small investors in the country
as well as in national banks. in insur
I ance companies, in savings banks, il
= trust companies. in financial agencies
f of every kind, railway securities. th'
d sum total Of which runs up to some tel
D or eleven thousand millions. constitute
: q vital part of the structure of credi
r and the unquestiOned sOlidity of tha
+ structure must be maintained.
i Reason for McAdoo.
e THE secretary of war and l easil
i agreed that. i'm view of the many com
|. plex interests which must he safe
v guarded and harmonized. as well a
/ because of his exceptional eXperienc
= and ability i'm this new field of govern
7 mental action. the Hon. William {
L McAdOo was the right man To aSsum
direct administrative control of thl
new task. At our request he cOnsente
e TO assume the authority and duties &
organizer and director general OF tn
new railway administration. He Ia
assumed those duties and his work
:, in active progress.
"It is probably too much to eNpe'
. that even under the unified railWa
: administration which will now be 20
n sble sufficient economies can be e
ic fected in the operation of the railwa!
# to make it possible to add To the
% equipment and extend their Operati'
ID facilities as much as the present e
e traordinary demands upon their u
re will render desirable without resOI
ing TO the national treasury for Il
a. funds If il is not possible, it wi
Of of course. be necessary to resort
lg congress for grants of money for tn
e. purpose. The secretary of the trea
st ury will advise with your committe
le with regard to this very practical q
v pect of the matter. For the present
al suggest only the guarantees have
y dicated and such appropriations as a
o. necessary at the outset of the task.
b. take the liberty Of expressing the no
st that the congress may grant the
er promptly and ungrudgingly. We a
e. dealing with great matters and wi
I'd ! l am sure, deal with them great,