, 1918-01-31

oioeuiUs we are serving the pubic
and safeguarding the public
SAFETY, but we are also regardful of
the interest Of those by whom these
great properties. are owned and glad
to avail ourselves Of the experience
and trained ability of those who have
been managing them.
Shipper s~afeauarded.
1t is necessary that the transporta-
ton of troops and of war material, of
FOOD and of fuel, and of everything
tina is necessary for the full mobiliza-
ton of the energies and OF
the country should be first considered,
but 1t is clearly in the public interest
also that the ordinary activities and
the normal individual and commercial
life of the country should be inter
fered with and dislocated as little as
possible, and the public may rest as
sured that the interest and
n of the private shipper will be as
carefully served and safeguarGed as
1t Is possible to serve and safeguard
it in the present extraordinary circum-
stances.
While the present authority of the
executive suffices for all purposes of
administration, n while, of course,
all private interests must for the pres
emit give way to the public necessity.
1t is, l 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 hat their
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.
Three-Year Average Payment Basis.
would suggest the average net rail-
way 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 circum-
stances permit.
1 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.
AhoSSab oAo Vi tic otlohh dlbuIliohI5
for assuming control of the railroads
at this time is the financial argu-
ment. 1t 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 Wa 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
it is an obligation of public con-
science and of public honor hat 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
Ill L hC ih6o Va eAo hSo
eral treasury and no fundamental
values should anywhere be
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.
MeAdoo to Undertake Work.
The secretary Of war and l 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 gov
ernmental action, the Hon. William G..
McAdoo was the right nan to as
sumo direct administrative control or
this new executive task. At u 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. 1t Is probably too much to ex-
rect that even under the unified rail-
way administration which will now be
possible sufficient economies a be
effected in the operation Of he rail
ways to make it possible to add to
their equipment and extend their op-
erative facilities as much as the pres
emit extraordinary demands upon their
use will render desirable without re-
sorting to the national treasury for
the funds.
Urges Congress to Respond Promptly.
II it is not possible 1t will. of course,
be necessary to resort to Congress