The Yale expositor. (Yale, St. Clair County, Mich.) 1894-current, 1918-01-10

SdleBuaIueu us III Is pOsSlDle 10 seINO
and safeguard II In the present ex-
traordinary circumstances.
To Keep Lines In Good Repair.
"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, 1t 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 re-
celve from the government an unqual-
flied guaranty that their properties will
be maintained throughout the period of
| federal control In as good repair and
as complete equipment as at present,
ando that the several roads will receive
under federal management such cop-
| pensation as Is equitable and just alike
to their owners and to the general
public.
81 would suggest the average net
railway operating income of the three
years ending June 80, 1917. l earnest
| ly recommend that these guarantees
be given by appropriate legislation and
given as promptly as circumstances
permit"
"DeaI Justly With Securities"
II need not point out the essential JUS
tice 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 con-
troll of the railroads at this time Is the
financial argument. 1t is necessary
that the values of railway securities
should be justly and fairly paid and
that the large financial operations ev-
cry year necessary in connection with
| the maintenance, operation and devel-
opment of the roads should, during the
period of the war; be wisely related to
the financial operations of the govern
ment.
"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 II Is an
obligation of public conscience and of
public honor that the private interests
we disturb should be kept safe from
unjust injury, and II is Of the utmost
consequence to the government itself
that all great financial operations
should be stabilized and co-ordinated
with the financial operations Of the
government. No borrowing should run
athwart the borrowings of the federal
treasury and no fundamental indus
trial values should anywhere be I'M
necessarily impaired. In the hands OF
many small investors in the country, as
well as in national banks in insurance
companies, In savings banks, in trust
companies, In financial agencies Of ev-
cry kind, railway securities, the sum
total of which runs up to some $10,-
OOO,OOO0O0 or $11,OOO,OOO,OO0, consti-
tute vital part of the structure of
credit, and the unquestloned solidity
of that structure must be maintained.
1.-THE secretary of war and easily
agreed that, in view Of the many COM
pick interests which must be safe
guarded and harmonized, as well as
because of his exceptional experience
and ability in this new field of govern
mental action, Hon. William G, Nc
Adoo 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 d.
rector general Of the new railway adj
ministratiOn. He has assumed those
duties and his work is In active prog
ress.
May Need Treasury Grants.
at is probably too much to expect
that even under the unified railway adj
ministration which will now be pos
sible sufficient economies can be eff
fected In the operation Of the rail-
ways to make 1t possible to add to
their equipment and extend their OPP
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. If Ii Is not possible, II will,
of course, be necessary to resort to
the congress for grants of money for
that purpose. The secretary Of the
treasury will advise with your commit
tee with regard to this very practical
aspect of the matter. For the pres
ent l suggest only the guarantees l
have indicated and such appropria-
| tons as are necessary ut the outset
of this task. l take the liberty of ex-
pressing the hope that the congress
may grant these promptly and I'M
grudgingly. We are dealing with great
matters and will, I am sure deal with
them greatly"