The Southern herald., 1918-01-11

egts and safeguarding tne pupLlO 0et0
fv hut we are also regardful OF the
interest OF those by whom these great
nroperties are owned, and glad to avail
ourselves OF the experiences and the
trained ability of these who have beeA
managing them. 1t is necessary that
the transportation Of the troops ana
of war materials, of food and OF fuel'
and Of everything that is necessary
for the full mobilization Of the en-
ergies and resources ct the country
snould be first considered; but 1t 10
clearly in the public interest also that
the ordinary activities and the Norman
industrial and commercial life OF the
country should be interfered with and
dislocated as little as possible, and
the public may rest assured that the
interest and convenience OF the prl'
yate shipper will be as carelully
served and safeguarded as 1t is posi-
bic to serve and safeguard 1t In the
present extraordinary circumstances
sidet.ack Private Interest.
while the present authority OF the
executive suffices for all purposes OF
administration, and while, OF course
all private interest must for the pres
ent give way to the public necessity
ii Is. | am sure you will agree with
me. right and necessary that the own
ers and creditors of the railways, the
holders of their stocks and bonds,
should receive from the government
an unqualified guarantee that thelr
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 op-
Grating income of the three years end
ing June 30, 1917. earnestly recon-
mend that these guarantees be given
by appropriate legislation, and given
as promptly as circumstances permit.
81 need not point out the essential
Justice OF such guarantees and their
great influence and significance as
elements 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 agreement.
II necessary that the values Of rail-
way securities should be justly and
fairly protected and that the large
financial operations every year neces-
sary in connection with the mainte-
nance, operation and development Of
the roads should, during the period Of
the war, be wisely related to the H.
nancial operations Of the government
War Is First Duty Of Nation.
"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
also 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 gov
ernment itself that all great financial
operations should be stabilized and co.
ordinated with the financial opera
tions Of the government No borrow.
ings should run athwart the borrow.
ings OF the federal treasury, and no
fundamental industrial values should
anywhere be unnecessarily impaired
In the hands Of many thousands oi
small investors in the country, as vel
as in national banks, in insurance
companies, in savings banks, in trus
companies, in financial agencies o
every kind, railway securities the sun
total Of which runs up to some ten o.
eleven thousand millions, constitute
vital part Of the structure of credi
and the unquestioned solidity of tina
/ structure must be maintained.
"The secretary of war and easil
( agreed that, in view Of the many CON
[ plex interests which must be safe
guarded and harmonized, as we'll a
!. because Of his exceptional experienc
+ and ability in this new field of gov
3 ernmental action, the Hon. William {
I McAdoo was the right man to assum
. direct administrative control of thi
) new executive task. At our reques
: he consented to assume the authorit
1 and duties of organizer and directo
8 general Of the new railway admins
+ tratlon. He has assumed those dutie
| and his work is in active progress.
: ut Is probably too much to expeC
q that, even under the unified railwa
administration, which will now be DO
Q sible, sufficient economies can be Q
fected in the operation of the raj
L ways to make it possible to add |
: their equipment and extend their O.
u erative facilities as much as the pre-
ent extraordinary demands upon the
use will render desirable, without +
n sorting to the national treasury Il
s. the funds. II 1t is not possible, 1t wi
u Of course, be necessary to resort
n the congress for grants Of money I,
o that purpose. The secretary of Il
IS treasury will advisa with vour co,