The Meridian times. (Meridian, Idaho) 1909-1938, 1918-01-11

that is necessary mobilization of re-
sources of the country should be first
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 interfered with and dislo-
Gated as little MS possible and the pub
lie may rest assured that the interest
and convenience of the private shipper
will he as carefully served and safe
guarded as it is possible to serve and
safeguard it in the present eXtraor-
I binary circumstances.
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, it
Is, I am sure you will agree with me,
| right and necessary that the owners
and creditors of the railways, the hold
| ers of their stocks and bonds should
receive from the government an un-
| qualified guarantee that their proper
| ties Will be maintained throughout the
| period of federal control in as good
4
repair and complete equipment as at
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 gem
eral public. / would suggest the aver
age net railway operating income of
the three years ending June so, 1917
Asks Guarantees.
Il earnestly recommend that these
guarantees be given by appropriate leg
islation and given as promptly as cir
cumstances permit.
Il need not point out the essential
! justice of such guarantees and their
great influence and significance as ele-
ments in the present financial 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, opera
ton and development Of the roads
should, during the period Of the war,
be wisely related to the financial oper-
ations of the government Our first
duty is, of course, to conserve the
common interest and the common safe
ty and to make certain that nothing
stands in the way of the successful
prosecution of the great war for lib
erty and justice, but it is also an obli-
CATION of public conscience and of pub
lie honor that the private interests we
disturb should be kept safe from I'M
just injury and it 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.
mo borrowing should run athwart
/ the borrowings of the federal treasury,
: and NJ fundamental industrial values
{ should anywhere be unnecessarily inn
{ paired. In the hands of many thou-
sands Of small investors in the country,
as well as in national banks, in insur-
ance companies, in savings banks, in
trust companies, in financial agencies
: of every kind, railway securities, the
: sum total Of which runs up to some ten
: or eleven thousand millions, constitute
vital part of the structure of credit
, and the unquestioned solidity Of that
structure must he maintained,
; Reason for MeAdeo,
'The secretary of war and I 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, the Hon. William G.
McAdoo was the right man to assume
direct administrative control of this
new task. At our request he consented
to assume the authority and duties Of
organizer and director general of thu
! new railway administration. He has
assumed those duties and his work is
: in active progress.
sit is probably too much to expect
that even under the unified railway
administration which will now be pos
sible sufficient economies can be eff
, fected in the operation of the railways
/ TO make it possible to add to their
equipment and extend their operative
! facilities as much as the present ex-
traordinary demands upon their use
will render desirable without resort
= ing to the national treasury for the
: funds. If it is not possible, it will,
= of course, be necessary to resort to
: congress for grants of money for thai
a purpose. The secretary of the treas.
: ury will advise with your committees
with regard to this very practical as
g pect of the matter. For the present,
g suggest only the guarantees have in,
5 dictated and such appropriations as are
! necessary at the outset of the task.
: take the liberty of expressing the hope
: that the congress may grant these
l. promptly and ungrudgingly. We are
c dealing with great matters and will