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 holders of their stocks and bonds, should receive from the
Government an unqualified guarantee that their properties will be
maintained throughout the period of federal control in as good repair
and as 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 general public. I would suggest
the average net railway operating income of the three years ending June
30, 1917. I earnestly recommend that these guarantees be given by
appropriate legislation, and given as promptly as circumstances permit.
I 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 argument.
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