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Show PRESIDENT OUTLINES VIEWS II ADDRESS Appears Before Joint Session of Senate and House and Recommends Recom-mends Legislation for Carrying Out Programme Pro-gramme for Government Govern-ment Operation of the Railways. APPROPRIATION OF $500,000,000 ASKED Executive Lays Stress Upon the Necessity for Taking Control at This Time, Owing to Inability of the Managers Man-agers to Co-ordinate the Properties. i WASHINC.TON, Jan. 4. Legislation to repulatc the government 'a operation of railroads and to guarantee the carriers car-riers compensation on the basis of their average operating income for the last three years was asked of congress today by President Wilson in an address to both houses in joint session. Bills embodying em-bodying his recommendations and carrying carry-ing an appropriation of half a billion dollars as a "revolving fund" were introduced immediately and an attempt will be made to rush them to prompt passage. While the president's address met with general approval among Democrats and Republicans alike, opposition is expected ex-pected to develop over a provision in tho administration bill that federal con- trol shall continuo after the war indefinitely, indefi-nitely, or until congress orders otherwise, other-wise, and-over details of the compensation compensa-tion bnsis. Will Solve Labor Problems. Air. MeAdoo spent the day planning a solution of labor questions with the heads of t ho four railroad brotherhoods and finally decided to refer tho brotherhoods' broth-erhoods' pending demand for a general wage increase to an advisory board of four members to be appointed by him in a few days. This board will investigate investi-gate all phases of the brotherhoods' demands and recommend a courso to Mr. MeAdoo. His decision will be effective ef-fective as to wages from January 1. The plan will affect immediately only the wage requests of the brotherhoods, but demands which may be made later by other classes of organizod labor probably would be handled in the same way, Mr. MeAdoo reserving the right to make whatever decision he chooses without, regard to recommendations of advisers. Increase Probable. Borne increases, both to the brotherhoods brother-hoods and to other railway labor in general, are considered certain. The director di-rector general, in a statement tonight, promised every employee that his fights and interests will be justly dealt with and appealed for a hearty spirit of enthusiasm aud co-operation from evory man. Special orders were issued providing 500 additional cars shall be furnished daily to certain specified bituminous and anthracite mines, mainly in Pennsylvania, Penn-sylvania, for supplying New' England. These probloms 'forced Mr. MeAdoo to postpone until tomorrow action on eastern passenger traffic officials' recommendations rec-ommendations for curtailment of passenger pas-senger schedules, but he is expected to issue orders then for abandonment of a number of trains and elimination of parlor and sleeping ears to a great extent. ex-tent. Will Escape Draft Mr. MeAdoo explained toriav that although al-though no general provision can be made under the law for exempting railroad rail-road employees from the draft, he will not hesitate to appeal to local exemption exemp-tion boards to defer the calling of these workers if the' boards of their own volition do not display a tendency to regard the railroads as an essential industry in-dustry from which employees should not be taken for military service. In his address to congress. President Wilson, announcing his action in taking over the railroads, praised the way iii which railroad executives went to work in an attempt to unify their lines under private management, but said the war emergency demanded government action ac-tion because only under government administration ad-ministration could as absolutely unrestricted unre-stricted and unembarrassed common use be made of all lines and facilities. He promised that "the common administration adminis-tration will be carried out with as little disturbance of the pre'sent operating organization and personnel of the railways rail-ways as possible," and repeated the assurance given in his proclamation last week that owners of railroad securities should not suffer financial loss because of the new plan of operation. Scope of Bill. AVhen the prevalent concluded, the art-ministrntion art-ministrntion hill was introdiR-ed in the senate 'v Senator Smith of South Carolina Caro-lina nni in the house by Chairman Sims of the iuterstate commerce committee. hi .'I'M i f i'ni to ;i;ru'r;.at ijrv ',-'Min ',-'Min an i ; rj i I i 1 1 ' for Tin: ronin-iaTHm ai. ini'i.-r v-lii'-h t!i-' erumi'iit 'i:ir-! 'i:ir-! .'i ii r ci',- an a'i-(-:'a! n-ln rn of xjiiip, j .!Mjii,'Hh.'jni) a war, th" iiiru-iin; si-ts I I or J h in detail the conditions ! winch Lrowrnrricnt im"t;j-' uni to . carried on. and in addition to .-j ir i d ' povwrs tfiVHH tilt rr ,iit'ilt. would aa- j t liorii- hi rn to w n-ii; ot ht-r powers : nece-arv to maintain ra"tn-a! govern- j meat operation and to d-dcatf his an- j thoritv to any acn.-y. 1'nd'T th htt pro VI.-ion tin- prt'Sidi-iit expected to ! i 1 1 an order tran-r'ei-nri to Uirector fieneia! M.-Adoo all functions ve-.-ted in the cii,'i' executi c. This will caul-re tli" d i rei'tor perioral to 01 'an i ze a corpora' cor-pora' ion for handling rai Iroa d sera ri-tieH ri-tieH in a-crifVancc with a plan now under un-der con.-iiderat ion. Rai Iroa '1 officials arp oxp eted to ijrr a inimiier of modifications of the j accounting method prcs'-ri ted by the j hill for reach i the i a irlard return I ba-d. hut official-" e:pe,;t the scheme I a-, ourlim-d in th.- Idii prolaldv will he f oMoiwd in the main. Some disc us- I i on is Inn'M for ovpr t lie bill s provision pro-vision that new federal taxes nlider the war re ven ne act a re not to be I idia red aa i list the re ven ue in ouin-putin ouin-putin the standard return, as are ordinary or-dinary taxes. The effect of I his will be to require railroads to pay war taxes (jut of their government corn pen sat ion. The broad power which the administration adminis-tration would have over the roads is illustrated il-lustrated by tin' bill's provision that the president midit order any extension exten-sion or improvements and advance funds necessary for t hese. The procedure in such rases would be for the road to issue bonds to fi nance the im provo-ments provo-ments nnd the bonds would be absorbed by the government revolving fund. Director Di-rector Oneral MeAdoo ainady has indicated in-dicated that lie will not hesitate to order or-der new lines built or adequate terminal or other facilities constructed wherever they are thought necessary. Water Transportation. G reat significance was seen by congressional con-gressional leaders in the section providing pro-viding for acquisition and operation of water transportation facilities. Advocates Advo-cates of barge; transportation on the Mississippi, Missouri and Ohio rivers, the Erie eana! aud other inland routes, have conferred with the director general gen-eral within the past week and received his Assurance that water transportation would .be given attention as soon as ho has time to tako up tho nidation. 1 f congress passes tho bill with a $.100. (X 10,000 appropriation this sum will have to be raised by issue of additional addi-tional liberty bonds, unless it should become apparent that economies under the government pooling system aro auf- , ficient to counterbalance special expen- j dttures and to meet a possible deficit ! in the year's earnings under the stand- I ard return. I McAdoo's Statement. Referring to his negotiations with the brotherhood chiefs yesterday and today, to-day, Mr. MeAdoo tonight issued a statement state-ment saying: "This" is a time of groat stress and the attitude of every employee should be determined by the supreme need of tho hour duty to his country first of all. I cannot state too strongly the necessity ne-cessity for devoted and loyal service by every man in this emergency. Every railroad employee is now in effect a government employee and as much in duty bound to give his best service to his 'country as if he wore the -uniform of tho United States army and occupied the trench at the front. Every unnecessary unnec-essary delay in a train movement vital-ly vital-ly affects our soldiers and sailors and seriously impairs our ability to defend our rights and our liberties. Every man whoso neglect or indifference causes such delays may be responsible for the loss of five sod of some noble American mother or father. It is as serious to the country for an employee to be a slacker in nis work as for a man to be a slacker in the army. "The present serious congestion and actual suffering for the want of coal and other supplies will be greatly im- I proved and may be entirely remedied j if every employee will do nis utmost j in individual task. In the name of patriotism, pa-triotism, ' therefore, for the protection ! of our sons abroad and for the safety ; of the nation, I hope that every man, . wherever placed, will do his level best. Let ns who stay at home bo ashamed not to be willing to make sacrifices j equally as great as those our gallant sons are already making for us on the bloody field of France." Full Text of Address. The president spoke In full as follows: Gentlemen of the congTesB: I have asked the privilege of ad- ' dressing you in order to report that on the 2Sth of December, last, dur- " Ing the recess of congress, acting l through the secretary of war and under the authority conferred upon & me by the act of congress approved August 29, 1916. I took possession j and assumed control of the railway i lines of the country and the systems of water transportation under their control. This step seemed to be Im- g peratively necessary in the interest K of the public welfare, in the pres- E ence of the great tasks of war with P, which we are 'now dealing. An our fc experience develops difficulties and E makes it clear what they are. I have E deemed it my duty to remove those difficulties wherever I have the legal fc. power to do so. To assume control p ot the vast railway systems of the fc': country, is, I realize, a very heavy h responsibility, but to fail to do so E in the existing circumstances would - have been much greater. I assume t the less responsibility rather than 1 1 the weightier. I am sure that I am K speaking the mind of all thoughtful j t Americans when I say that it is our : i- dutv as the representatives of the ' E, nation to do everything that It is If necessary to do to secure the com- i e plete mobilization of the whole re- j sources of America by as rapid and effective a means as can be found. ' Transportation supplies all the ar- j S terles of mobilization. Unless it be j , under a single and unified direction, the whole process of the nation's t action is embarrassed. I True Spirit of America. It was in the true spirit of America and it wis right that we should try f to effect the necessary unification !: under the voluntary action of those who were In charge of the great rail- g way properties, and we did try it. . E The directors of the railways re- j sponded to the need promptly and ; generously. The group of railway : executives who were charged with ' the task of actual co-ordination and : general direction performed their : task wtih patriotic zeal and marked ; ability, as was to have been expected. ft and did, I believe, everything that it was possible for them to do in the i p circumstances. If I have taken the ! t task out of their hands, it has not been because of any dereliction or i & failure on their part, but only be- j cause there were some things which I r the government can do and present ! s management cannot. We shall con- i tinue to value most highly the advice : & and assistance of these gentlemen ; jtj and I am sure we shall not find f them withholding it. '. 5 It had become unmistakably plain ? that only under government adminis- e t ration can the entire equipment 'of i 5 the several systems of transportation be fully and unreservedly thrown into ; I common service without injurious ' g discrimination against particular f properties. Only under government ' administration can an a bsnlutely tin- restricted and unembarrassed com- $ mon use be made of all tracks, ter- ! g minald. terminal facilities and euip- 1 ment of every kind. Only under ' i ! ti'.-tt authoritv c;in new fcrmina14 be 1 1 ::y t :': 'Ici ami ijeviorjc-i wil y n.U v-Sf riJ to t;.e re 1 u !'r-rne-n i.s or li:r.i-iciions li:r.i-iciions f ;articiiar rvaf!. But i;h-il'-r MvcrnnienT administration all t'.e.e things will be p'sibie not in-r in-r a r t ! v. b 1 T a. f 3 t as ; ra r tica d i f -:.'!:; u-s, wl-i' h ' .'inri"t he n-.ert'y 1 "iij in-l ,hw,iv, sue w.ay before t'r:e i.'-'.v ma r.ii'4-merit. Safeguarding Public Duty. T'.xe nimnion administration will be rnrr!"r out with a lir.tle di'turbanc ff lhf pr-ffit operating oraniza-tirn oraniza-tirn anri prionn- of tlie raii'-vavs h. Wlli't.-. N tiling wilt be a't'-r.-i r tliMfirhc'd which it is not i:e-e--"--?arv to di.-itnrh, '; ;ji-f serving the public pub-lic ini'-rem and sa l :K uanJ 1 ng the public pub-lic safety, but we are also regardful t the Interest of tlue bv whom t!;r-se great prof rt ies ar owner and n:ai! to avail oursflvs of th experience experi-ence and trained ability of those who have been managing tiim. It i nc-es-san,' that the transportation of tr-'Ops ati'l ff war materials, of fool ar.d of fuel and every thincr tiuit Is t)-"'es.-jary for the full nmbi '-. izat ion of the energies and resources of the country should he first considered, hut it is i.-leHily in the public interest also that the ordinary activities and the normal industrial and commercial life of the country should be interfered inter-fered with and dislocated as little as possible, and the public may rest assured as-sured thut the Interest and cunven-ieiice cunven-ieiice of the private shipper will be V carefully served and safeguarded as it is possible to serve and safeguard safe-guard it in the present extraordinary circumstances. Compensation Suggestion. 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, neces-sity, 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 through-out the period of federal control in as good repair and as complete equipment equip-ment as at present, and that the several sev-eral roads will receive under federal management such compensation as is equitable and just alike to their owners own-ers and to the general public. I would suggest the average net railway operating op-erating income of the three years ' ended June 30, 1917. I earnestly recommend rec-ommend 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 .wiiiw1iffiuwirtwwywiiiKj.jufJWPW)iui.w www r!'"'inlfniiiiiraiirmifiiMr tma tr -j- n,iViirrrJrrn-fv rs : : ri !usr rial situation of t 1 ountry. Ind-e.1, one o; th.- strong arguments for assuming mi rol ot" t ne r a 1 1 roads at 'his t : r 1 Is the ri n a n c i a I argument. argu-ment. It is iiti.rs.ary t h;t t the vaius of railway s e 1 u r i 1 ? s s ' . o n ! d be Justly and fiii: ly paid and that the lare r.nam :ai opera; ;:,s every year necessary neces-sary 1 n con ne - t: rt v. the maintenance, mainte-nance, operytmn nnd development of tire roads s.iuuid . during the period of t.'ne iir. be wisely related to the financial operations of tiie government. govern-ment. Our r.rst duty is. of course. To conserve the common interest and the common safety and to ninke rer-t rer-t ri : n t na' not h i:,g stands in t :ie way of the successful prosecution of the gre;it war for liberty and jastive, but it is an obligation of puuil conscience con-science and of public honor that the private interests we disturb snuuld be kept sale from unjust injury, and It is of the utmost consequent-- to the government itself tnat ail great financial operations should be stabilized stabil-ized and co-ordinated with the financial finan-cial operations of the government. No borrowing should run athwart the borrowing of the federal treasury, and no fundamental industrial values should anywhere he unnecessarily Impaired. Im-paired. In the hands of small investors in-vestors In the country, as well as in national banks, in insurance companies, compa-nies, in savings banks, in trust companies, com-panies, In financial agencies of every kind, railway securities, the sum total of which runs up to some ten or eleven thousand millions, constitute a vital part of the structure of credit, and the unquestioned solidity of that structure must be maintained. Selection of MeAdoo. The secretary of war and I easily agreed that, in view of the many complex interests which must be safeguarded safe-guarded and harmonized as well as because of his exceptional experience and ability in this new field of governmental gov-ernmental action, the Honorable William Wil-liam G. MeAdoo was the right man to assume direct administrative control con-trol of this new executive '-ask. At our request, he consented to assume the authority and duties of organizer and director general of the new railway rail-way administration. He has assumed those duties nnd his work is in active progress. It is probably too much to expect that even under the unified railway administration which will now be possible pos-sible sufficient economies can be effected ef-fected In the operation of the railways rail-ways to make It possible to add to their equipment and extend their operative facilities as much as the present extraordinary demands upon their use will render desirable wdt flout fl-out resorting to the national treasury for funds. If It is not possible, it will, of course, be necessary to resort to congress for grants of money for that purpose. The secretary of the treasury treas-ury wdll advise with your committees with regard to this very practical' aspect as-pect of the matter. Fur the present, I suggest only the guarantees I have Indicated and such appropriations as are necessary at the outset of this task, I take tho liberty of expressing express-ing the hope that the congress may grant these promptly and ungrudgingly. ungrudging-ly. We are dealing with great matters mat-ters and will, I am sure, deal with them greatly. |