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

Washington, Jan. 4.-President vii
son today called upon congress to give
him full and unrestricted powers to con
duet the federal operation of the coun
try S railroads.
Before a joint session of the senate
and house, the president outlined the
initial steps necessary to the success
of Director General McAdoo s admin
istration OF the lines.
He explained the action already ta
ken was necessary to secure the com
plete mobilization Of the whole re-
sources of America by as rapid and eff
fective means as can be found -
Private interests" he said, "must
for the present give way to the public
necessity.
The president asked:
Necessary means for protecting the
interests of railroad stockholders.
Measures to protect travellers and
safeguard private shippers.
Compensation for the railroads, bas
ed on the average net railway operat-
ing income of the three years ending
June 80, 1917.
He added that cit is probably toe
much to expect that, even under the
unified railway administration, suffi-
cient economies can he effected to make
it possible to add to their equipment
aud extend their operative facilities as
much as the present extraordinary de-
mands will render desirable without re-
sorting to the. national treasury for
funds, but he asked no appropriation
gf hat Ia 4
will advise with the proper committees
later ON this point.
1t was a PLAIN business message, tax
ing but fifteen minutes to deliver and
was received quietly by the Legislators.
The president obviously sought to
quiet any possible unrest which might
result from the sweeping action of the
government.
Il is of the utmost consequence to
the government ITSELF he said, that
all great financial operations, be staoil-
lied and co-ordinated with the financial
operations of the government.
"No borrowing, - he added, "should
run athwart the borrowings of the fed
eral treasury and no fundamental indus
trial values should anywhere be I'M
necessarily impaired. I"
Ten or eleven billions Of dollars in
vested for securities by many thousands
of small investors as well as financial
institutions of all kinds, CONSTITUTE a
vital part of the structure of credit and
the unquestioned solidity of that struc-
ture must be maintained he declar
ed.
Immediately the president concluded
representative Sims, chairman of the
house interstate commerce committee,
introduced a bill carrying out the pres
ident 5 recommendations. The commit
tee will take up the bill Monday. Sims
expects report next week and will
press for immediate action by the house.
Sims and others of the commerce and
rules committees will confer with the
president tonight relative to means of
fastening action.
Presidents s Address
The president s address follows:
" Gentlemen of the congress:
~ have the privilege of addressing
you in order to report to you that on
the twenty eighth of December, last,
during the recess of the congress, act
ing through the secretary of war and
under the authority conferred upon me
by the act of congress approved Aug
ust %, 1916, l took possession and as
sumed control Of the railway lines of
the country and the systems of water
under their control. This
step seemed to be imperatively neces-
sary in the interest of the public vel
fare, in the presence OF the great tasks
of war with which we are now deal
ing. As our own experience develops
difficulties and makes il clear what
they are, ] have deemed it my duty to
remove those difficulties wherever Il
have the legal power to dc so. To as
sane control OF the vast railway sys-
tens CT the country is, realize, a very
grGat responsibility, but to fail to do
so in the existing circumstances would
have been much greater. / assumed the
less responsibility rather the weightieF.
l am sure that am speaking the mind
Of all thoughtful Americans when
say that il IS our duty as the repre- /
scntatives Of the nation to do every
thing that it is necessary to do to Sc
cure the complete mobilization Of the
whole resources of America by as rapid
and effective means as can be found.
transportation supplies all the arteries
OF mobilization. Unless II be under
single and unified direction, the whole !