The Raymer enterprise., 1918-01-10

ience Of the private shipper will be as
carefully served and safeguarded a.
It is possible to serve and safeguard
II In the present extraordinary circum.
stances.
While the present authority Of the
executive suffices for all purposes OF
administration, and while, OF course,
all private interests must for the pres
ent give way to the public necessity.
It 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 their
properties will be maintained through.
out the period Of federal control in as
good repair and as complete equip
ment az 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.
Thrse-ysar Average Payment Basis.
Iwould suggest the average net rail.
way operating income OF the three
years ending June 30, 1917. l earnest.
ly recommend that these guarantees
be given by appropriate legislation
and given as promptly as circum-
stances permit.
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.
Indeed. one OF the strong arguments
for assuming control OF the railroads
at this time Is the financial argu-
ment. It is necessary that the value
OF railway securities should be Justly
and fairly protected and that the
large financial operations every year
necessary In connection with the
maintenance. operation and develop
ment Of the roads should, during the
period OF the war be wisely related
to the financial operations Of the
government.
Prosecution Of War Primary Object.
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
1t Is an obligation of public con-
science and Of public honor that the
private interests we disturb should
be kept safe from unjust injury. and
1t Is Of the utmost consequence to
the government itself that all great
financial operations should be sta
bilized and co-ordinated with the
financial operations Of the govern
ment. No borrowing should run
athwart the borrowings of the fed
eral treasury and no fundamental
values should anywhere be unneces-
sarily impaired. In the hands OF
small investors in the country, as
well as In national banks, the insur-
ance companies. in savings banks. in
trust companies, In financial agen-
cies Of every kind. railway securities.
the sum total of which runs up to
some ten or eleven thousand mil
lions. constitute a vital part OF the
structure of credit and the unques-
tionable stability Of that structure
must be maintained.
McAdoo to Undertake Work.
The secretary Of war and easily
a0 hat fv. .,ta rSf tho
plex interests which must be safe
guarded and harmonized, as well as
because of his exceptional experience
and ability In this new field Of gov
ernmental action, the Hon. William q.
McAdoo was the right man to as
sumo direct administrative control OF
this new executive task. At our re-
quest he consented to assume the au-
thority and duties OF organizer and
director general Of the new railway ad-
ministration. He has assumed those
duties, and his work Is in active pro-
gress. II is probably too much to ex
pect that even under the unified rail.
way administration which will now be
possible sufficient economies can be
effected ip the operation OF the rail
ways to make 1t possible to add to
their equipment and extend their op-
erative facilities as much as the pres.
ent extraordinary demands upon their
use will render desirable without re-
sorting to the national treasury for
the funds.
Urges Congress to Respond Promptly.
II II is not possible 1t will, OF course,
be necessary to resort to Congress
for grants Of money for that purpose.
The secretary OF the treasury will ad.
wise with your committees with re-
gard to this very practical aspect OF
the matter. For the present sug-
gest only the guarantees have indl
Gated and such appropriations as are
necessary at the outset OF this task.
! take the liberty of expressing the
hope that the Congress may grant
these promptly and ungrudgingly We
are dealing with great matters, and
will, ! am sure. deal with them
greatly.