Evening journal., 1918-01-04

Under that authority can new iermipals
be constructed and developed without
regard to the requirements or limita-
tions Of particular roads But under
Government administration all three
things will be possblc-not instantly
but as fast as practical difficulties
which cannot be merely conlurcd away
give way.
"rhe common administration will be
carried with as little disturbance Of
the present operating organizations and
personnel Of tho railways as possible
Nothing VIII be altered or disturb d
which IL Is not necessary 10 disturb.
We are serving the public interest and
safeguarding the public safety, but we
are also regardful Of the interest o.
those by whom these great properties
are owned and glad 10 avail ourselves
Of the experience and trained ability
OF those who have been managing them.
II is necessary that the transportation
Of troops and Of war materials, Of food
and Of fuel and Of everything that is
necessary for the full mobilization Of
the energies and resources Of the cOun-
try should nrst be 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 interferred with and
dlslocated as little as possible and the
public may rest assured that the inland
inconvenience Of the private shipper
viii be carefully served and safe
guarded as 10 is possible 10 serve and
safeguard II in the present eXtraordi-
navy circumstances.
while the present authority Of the
executive su1lcies for all purpose and
while, Of course, all private interest
must for the pre-ent give way 10 the
public necessity, 10 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 the period Of Federal control
is IN as good repair and as complete
equipment as al 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 general public I would
suggest the average net railway operat-
ing income of The three years ending
June 30 1917. | earnestly recommend
that these guarantees be given by ap-
propriote legislation and given as
promptly as circumstances permit.
Il need not point out the essential
Justice Of such guarantees and their
great influence and signldcance as Gle
ments in the present fnancial 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 1t
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, oper-
alton and development Of the roads
should. during the period Of the war,
be wisely related TO the financial oper-
atlons of the Government Our first
duty Is, Of course, 10 conserve the COM
mon interest and the common safety
and to make certain that nothing stands
in the way Of the successful prosecu-
tion Of the great war for liberty and
justice, but it Is also an obligation OF
public conscience and Of public honor
that the private interest should be kept
safe from unjust injury No borrow
Ing should run athwart the borrowings
Of the Federal treasury, and no funda-
mental industrial values should any
where be unnecessarily impaired In
the hands Of many thousands Of small
investors in the country, as we'll as in
national banks, in insurance companies,
In savings banks. in trust companies, in
financial securities Of every kind. the
sum total Of which runs high, and Of
which the solidarity must be main
tancd.
Director General William G NlcAdoo
has assumed the direction Of the rail-
roads at my appointment
The Secretary Of War and I easily
agreed that in view of the many COM
pex interests which must be safe
guarded and harmonized, as we'll as be-
cause Of bis exceptional experience and
ability in this now field Of govern
mental action, the Hon William Il. Nc
AdOO was the right man TO assume di-
aualzlAEza -