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United States Railroad Administration.

Public acts, proclamations by the President relating to the United States Railroad Administration, and general orders and circulars issued by the Director General of Railroads to December 31, 1918 online

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UNITED STATES RAILROAD ADMINISTRATION

DffiECTOR GENERAL OF RAILROADS

BULLETIN NO. 4 (Revised)




PUBLIC ACTS

PROCLAMATIONS BY THE PRESIDENT

RELATING TO THE UNITED STATES

RAILROAD ADMINISTRATION

AND

GENERAL ORDERS AND CIRCULARS

ISSUED BY THE DIRECTOR GENERAL

OF RAILROADS

TO

DECEMBER 31. 1918







WASHINGTON

GOVERNUENT FEINTING OmCB

1919



UNITED STATES RAAROAD ADMINISTRATION
DIRECTOR GENERAL OF RAILROADS

BULLETIN NO. 4 (Revised)



PUBLIC ACTS

PROCLAMATIONS BY THE PRESIDENT

RELATING TO THE UNITED STATES

RAILROAD ADMINISTRATION

AND

GENERAL ORDERS AND CIRCULARS

ISSUED BY THE DIRECTOR GENERAL

OF RAILROADS

TO

DECEMBER 31, 1918




WASHLNGTON

GOVERNMENT PRINTING OFFICE

1019



UNITED STATES RAILROAD ADMINISTRATION.

W. G. McAdoo, Director General.

Walker D. Hines, Assistant Director General.

OscAE A. Price, Assistant to the Director General.

M. Brice Clagett, Private Secretary to Director General.

Division of Finance and Purchases:

John Skelton Williams, Director.

General Counsel:

John Barton Payne.

Division of Operation:

Carl R. Gray, Director.

Division of Trafflc:

Edward Chambers, Director.

Division of Labor:

W. S. Carter, Director.

Dirision of PuMic Service and Accounting:
Charles A. Prouty, Director.

Dirision of Capital ExpenMtures:
Robert S. Lovett, Director.

Division of Inland Waterioays:

G. A. ToMLiNSON, Director.

Acttiary to the Railroad Administration:
TiiKODOKE H. Prick.



UHL



CONTENTS.

Public acts : Page.

No. 241— Sixty-fourth Congress (H. R. 15947)— An act making appro-
priations for the naval service for the fiscal year ending June 30, 1917,

and for other purposes (extract) 5

No. 242— Sixty-fourth Congress (H. R. 17498)— An act making appropria-
tions for the support of the Army for the fiscal year ending June 30, 1917,

and for other piu-poses (extract) 5

No. 107— Sixty-fifth Congress (S. 3752)— An act to provide for the operation
of transportation systems while under Federal control, for the just com-
pensation of their owners, and for other purposes 11

Proclamations by the President relating to the United States Railroad Adminis-
tration :
Proclamation of December 26, 1917, taking railroads and transportation
systems under Federal control and appointing the Director General of

Railroads 6

Statement of the President accompanying his procalmation of December

26, 1917 .' 9

> Proclamation of March 29, 1918, delegating powers under act of March 21,

^ 1918, to Director General of Railroads 20

^ Proclamation of April 11, 1918, taking certain coastwise transportation

systems imder Federal control 21

Proclamation of July 22, 1918, possession and control of the transportation

system of the Boston, Cape Cod & New York Canal Co 24

Proclamation of November 16, 1918, possession and control of American

Railway Express Co 27

"V Order of relinquishment 29

^ Opinion sustaining W. G. McAdoo, Director General of Railroads, by Hon.

^ Jacob Trieber 31

Form A. — Agreement between the Director General of Raih-oads and blank

company ^^

Form B. — Agi-eement between the Director General of Railroads and blank

company and other corporations 59

Short line contract 80

3 Memorandum of agreement between William G. McAdoo, Director General of

^ Railroads, and the American Railway Express Company 85

L V Public announcements 99

General orders:

Issued by Director General of Railroads to and including December 31,

1918 145

List of 141

Index to 405

Circulars:

Issued by Director General of Railroads to and including December 31,

1918 357

List of 355

Index to 432

(3)



PUBLIC ACTS AND PROCLAMATIONS.



[Extract.]

[Public — No. 241 — 64tli Congress.]

LH. R. 15947.]

An act making appropriations for the naval service for tlie fi.scal year ending
June thirtietli, nineteen hundred and seventeen, and for other purposes.

Be it enacted hy the Senate and House of Representatives of the
United States of Ainerlca in Congress assemhled. That the following
sums be, and they are hereby, appropriated, to be j)aid out of any
money in the Treasury not otherwise appropriated, for the naval
service of the Government for the year ending June thirtieth, nine-
teen hundred and seventeen, and for other purposes: * * *

Section six of an act entitled " An act to regulate connnerce, " ap-
proved February fourth, eighteen hundred and eighty-seven, as
amended March second, eighteen hundred and eighty-nine, and June
twenty-ninth, nineteen hundred and six, Avhich reads:

"That in time of war or threatened war preference and precedence

lull. \\\)(n] Jci!i;ir!(! of \\\i' P]-i-'Hlci!t of tlic United State^t. be gi\"i'ii
"over all other trailic for ihe traDsportatJun of troopb and material of
war. and carriers slial] adopt i-very means within rheir control to
tafilitate arid ex])e(liie the mijitary traffic.'"
je amended to read as follo^^ sj_ "'""'"~"'"'' ^""'

"That m time of war or threatened war preference and precedence
shall, upon demand of the President of the United States, be given
over all other traffic for the transportation of troops and material of
war, and carriers shall adopt every means Avithin their control to
facilitate and expedite the military traffic. And in time of peace
.shipments consigned to agents of the United States for its use shall
be delivered by the carriers as promptly as possible and without re-
gard to any embargo that may have been declared, and no such em
bargo shall apply to shipments so consigned. -' * * *



I Extract.]

[Public— X.). 242— 64th Congress.]

[H. R. 17498.]

An act making appropriations for the support of the Army for the fiscal year

ending June thirtieth, nineteen liundred and seventeen, and for other

purposes.

Be it enacted hy the, Senate and House of Bepresentatives of the,
United States of America in Cone/ress assemhled. That the following
sums be, and they are hereby, appropriated, out of any money in the

(5)




-^1



Treasui\v not otherwise appropriated, for the support of the Army
for the year ending June thirtieth, nineteen hundred and seven-
teen. * * *

The President, in time of war, is empowered, through the Secretary
of War, to take possession and assume control of any system or sys-
tems of transportation, or any part thereof, and to utilize the same,
to the exclusion as far as may be necessary of all other traffic thereon,
for the transfer or transportation of troops, war material and equip-
ment, or for such other purposes connected with the emergency as
may be needful or desirable. * * ^'^



Bt the President or the United States or America



z^-.



/



^



A PROCLAMATION. '' y^L^//^/n

Whereas the Congress of the United States, in the exercise^f the
constitutional authority vested in them, by joint resolution of the
Senate and House of Representatives bearing date April 6. 1917.
resolved :

That the state of war between the United States and the Imperial German
Government which has tlius been thrust upon the United States is liereby for-
mally declared; and that the President be, and he is hereby authorized and
directed to employ the entire naval and military forces of the United States
and the resources of the Government to carry on war against the Imperial
German Government; and to bring the conflict to a successful termination all
of the resources of the country are hereby pledged by the Congress of the
United States.

And by joint resolution bearing date of December 7, 1917, resolved :

That a state of war is hereby declared to exist between the United States of
America and the Imperial and Royal Austro-Hungarian Government ; and that
the President be, and he is hereby authorized and directed to employ the entire
naval and military forces of the United States and the resources of the Govern-
ment to carry on war against the Imperial and Royal Austro-Hungarian Gov-
ernment; and to bring the conflict to a successful termination all the resources
of the country are hereby pledged by the Congress of the United States.

And whereas it is provided by section 1 of the act approved August
29, 1916, entitled "An act making appropriations for the sujjport
of the Army for the fiscal year ending June 30, 1917, and for other
purposes," as follows:

The President in time of war is empowered, through the Secretary of War,
to take possession and assume control of any system or systems of transporta-
tion, or any part thereof, and to utilize the same, to the exclusion, as far as
may be necessary, of all other traffic thereon, for the transfer or transportation
of troops, war material, and equipment, or for such other purposes connected
with the emergency as may be neetlful or desirable.

I And whereas it has now become necessary in the national defense
to take possession and assume control of certain systems of trans-



portation and to utilize the same, to the exclusion, as far as may
be necessary, of other than war traffic thereon, for the transporta-
tion of troops, war material, and equipment therefor, and for other
needful and desirable purposes connected with the prosecution of ^
the war; N.

Now, therefore, I, Woodroav Wilson, President of the United \
States, under and by virtue of the powers vested in me by the fore- \
going resolutions and statute, and by virtue of all other powers j
thereto me enabling, do hereby, through Newton D. Baker, Secre-
tary of War, take possession and assume control at 12 o'clock noon
on the 28th day of December, 1^17, of each and every system of
transportation and the appurtenances thereof located wholly or in
part within the boundaries of the continental United States and
consisting of railroads and owned or controlled systems of coastwise
and inland transportation engaged in general transportation, whether
operated by steam or by electric power, including also terminals,
terminal companies, and terminal associations, sleeping and parlor
cars, private cars and private car lines, elevators, warehouses, tele-
graph and telephone lines, and all other equipment and appurte-
nances commonly used upon or operated as a part of such rail or com-
bined rail-and-water systems of transportation ; to the end that such
systems of transportation be utilized for the transfer and trans-
portation, of troops, war material, and equipment, to the exclusion |
so far as may be necessary of all other traffic thereon ; and that so far j
as such exclusive use be not necessary or desirable such systems of j
transportation be operated and utilized in the performance of such
other services as the national interest may require and of the usual/
and ordinary business and duties of common carriers.

It is hereby directed that the 'possession, control, operation, and
utilization of such transportation systems, hereby by me undertaken,
shall be exercised by and through William G. McAdoo, who is hereby ^^
appointed and designated Director General of Eailroads. Said di-
rector may perform the duties imposed upon him, so long and to
such extent as he shall determine, through the boards of directors,
receivers, officers, and employees of said systems of transportation.
Until and except so far as said director shall from time to time by
general or special orders otherwise provide, the boards of directors,
receivers, officers, and employees of the various transportation sys-
tems shall continue the operation thereof in the usual and ordinary
course of the business of common carriers, in the names of their re-
spective companies.

Until and except so far as said director shall from time to time
otherwise by general or special orders determine, such systems of
transportation shall remain subject to all existing statutes and orders




8

of the Interstate Commerce Commission and to all statutes and
orders of regulating commissions of the various States in which said
systems or any part thereof may be situated. But any orders, gen-
eral or special, hereafter made by said director shall have paramount
authority and be obeyed as such.

Nothing herein shall be construed as now affecting the possession,
'operation, and control of street electric passenger railways, includ-
ing railways commonly called interurbans, whether such railways
^be or be not owned or controlled by such railroad companies or sys-
tems. By subsequent order and proclamation, if and when it shall
be found necessary or desirable, possession, control, or operation may
be taken of all or any part of such street railway systems, including
subways and tunnels; and by subsequent order and ]3roclamation
possession, control, and operation in whole or in part may also be
relinquished to the owners thereof of any part of the railroad sys-
tems or rail and water systems, possession and control of which are
hereby assumed.

The director shall, as soon as may be after having assumed such
possession and control, enter upon negotiations with the several
companies looking to agi'eements for just and reasonable compensa-
tion for the possession, use, and control of their respective properties
on the basis of an annual guaranteed compensation above accruing
depreciation and the maintenance of their properties equivalent, as
nearly as may be, to the average of the net operating- income thereof
for the three-year period ending June 30, 1917, the results of such
negotiations to be reported to me for such action as may be appro-
priate and lawful.

But nothing herein contained, expressed or implied, or hereafter
done or suffered hereunder, shall be deemed in any way to impair
the rights of the stockholders, bondholders, creditors, and other per-
sons having interests in said systems of transportation or in the
profits thereof to receive just and adecjuate compensation for the use
and control and operation of their property hereby assumed.

Regidar dividends hitherto declared and maturing interest upon
bonds, debentures, and other obligations nuiy be paid in due course;
and such regular dividends and interest may continue to be paid
until and unless the said director shall from time to time otherwise
by general or special orders determine ; and, subject to the approval
of the director, the various carriers may agree upon and arrange for
the renewal and extension of maturing obligations.

Except with the prior vv'ritten assent of said director, no attach-
ment by mesne process or on execution shall be levied on or against
any of the property used by any of said transportation systems in
the conduct of their business as common carriers; but suits may be
brought by and against said carriers and judgments rendered as



hitherto until and except so far as said director may, hj general or
special orders, otherwise determine. ^

From and after 12 o'clock on said 28th day of December, 1917, all I
transportation systems inchuled in this order and proclamation shall I ^^^
conclusively be deemed Avithin the possession and control of said I [^^
diree-tor without further act or notice. But for the purpose of \
accounting said possession and control shall date from 12 o'clock I
midnight on December 31, 1917. .,.y^

In witness whereof I have hereunto set my hand and caused the
seal of the United States to be affixed.

Done by the President, through Xewton D. Baker, Secretary of
War, in the District of Columbia, this 26th day of December, in the
year of our Lord one thousand nine hundred and seventeen, and of
the independence of the United States the one hundred and forty-
second.

WOODROW WiLSOX.

By the President:
Egbert Lansing,

Seei'efarj/ of Sfnfe.
Newton D. Baker,
SeoT'etary of ^Yar.

Statement of the President.

I have exercised the powers over the transportation systems of the
country which were granted me by the act of Congress of last
August because it has become imperativeh^ necessary for m© to do
so. This is a war of resources no less than of men, perhaps even
more than of men, and it is necessary for the complete mobilization
of our resources that the transportation systems of the country
should be organized and employed under a single authority and a
simplified method of coordination which have not proved possible
under private management and control. The committee of railway
executives who have been cooperating with the Govermnent in this
all-important matter have done the utmost that it was possible for
them to do ; have done it with patriotic zeal and with great ability ;
but there were difficulties that they could neither escape nor neu-
tralize. Complete unity of administration in the present circum-
stances involves upon occasion and at many points a serious dislo-
cation of earnings, and the committee was, of course, without
power or authority to rearrange charges or effect proper compensa-
tions and adjustments of earnings. Several roads which were will-
inglj^ and with admirable public spirit accepting the orders of the
committee have already suffered from these circumstances and should
not be required to suffer further. In mere fairness to them the full
authority of the Government must be substituted. The Government



10

itself will thereby gain an immense increase of efficiencj'' in the con-
duct of the war and of the innumerable activities upon which its
successful conduct depends.

The public interest must be first served and, in addition, the finan-
cial interests of the Government and the financial interests of the rail-
ways must be brought under a common direction. The financial
operations of the railwaj^s need not then interfere with the borrow-
ings of the Government, and they themselves can be conducted at a
greater advantage. Investors in railway securities may rest assured
that their rights and interests will be as scrupulously looked after
by the Government as they could be by the directors of the several
railway systems. Immediately upon the reassembling of CongTess I
shall recommend that these definite guarantees be given: First, of
course, that the railway properties will be maintained during the
period of Federal control in as good repair and as complete equip-
ment as when taken over by the Government; and, second, that the
roads shall receive a net operating income equal in each case to the
average net income of the three years preceding June 30, 1917; and I
am entirely confident that the CongTess will be disposed in this case,
as in others, to see that justice is done and full security assured to the
owners and creditors of the great systems which the Government
must now use under its own direction or else suffer serious embarrass-
ment.

The Secretary of War and I are agreed that, all the circumstances
being taken into consideration, the best results can be obtained under
the immediate executive direction of the Hon. William G. McAdoo,
whose practical exj^erience peculiarly fits him for the service and
whose authority as Secretary of the Treasury will enable him to
coordinate as no other man could the many financial interests which
will be involved and which might, unless systematically directed,
suffer very embarrassing entanglements.

The Government of the United States is the only great Government
now engaged in the war which has not already assumed control of
this sort. It was thought to be in the spirit of American institutions
to attempt to do everything that was necessary through private man-
agement, and if zeal and ability and patriotic motive could have
accomplished the necessary unification of administration it would
certainly have been accomplished ; but no zeal or ability could over-
come insuperable obstacles, and I have deemed it my duty to recog-
nize that fact in all candor, now that it is demonstrated, and to use
without reserve the great authority reposed in me. A great national
necessity dictated the action, and I was therefore not at liberty to
abstain from it.

WOODROW AViLSON.




[Public— No. 107 — 65th Congress.



An Act To provide for the operation of tran.sportation systems vhile under
Federal control, for tlie .lust compensation of their owners, and for other
purposes.

Be it enacted, hy the Seriate and Home of Representatives of the
United States of America in Congress assembled^ That the President,
having in time of war taken over the possession, use, control, and
operation (called herein Federal control) of certain railroads and
sj^stems of transportation (called herein carriers), is hereby author-
ized to agree with and to guarantee to any such carrrier making oper-
ating returns to the Interstate Commerce Commission, that during
the period of such Federal control it shall receive as just compensa-
tion an annual sum, payable from time to time in reasonable install-
ments, for each year and pro rata for my fractional year of such
Federal control, not exceeding a sum equivalent as nearly as may be
to its average annual railway operating income for the three years
ended June thirtieth, nineteen hundred and seventeen.

That any railway operating income accruing during the period of
Federal control in excess of such just compensation shall remain the
property of the United States, In the computation of such income,
debits and credits arising from the accounts called in the monthly
reports to the Interstate Commerce Commission equipment rents and
joint facility rents shall be included, but debits and credits arising
from the operation of such street electric passenger railways, includ-
ing railways commonly called interurbans, as are at the time of the
agreement not under Federal control, shall be excluded. If any lines
were acquired by, leased to, or consolidated with such railroad or
system between July first, nineteen hundred and fourteen, and De-
cember thirty-first, nineteen hundred and seventeen, both inclusive,
and separate operating returns to the Interstate Commerce Commis-
sion were not made for such lines after such acquisition, lease, or con-
solidation, there shall (before the average is computed) be added to
the total railway operating income of such railroad or system for the
three years ended June thirtieth, nineteen hundred and seventeen,
the total railway operating income of the lines so acquired, leased,
or consolidated, for the period beginning July first, nineteen hundred
and fourteen, and ending on the date of such acquisition, lease, or
consolidation, or on December thirty-first, nineteen hundred and
seventeen, whichever is the earlier. The average annual railway
operating income shall be ascertained by the Interstate Commerce
Commission and certified by it to the President. Its certificate shall,
for the purpose of such agreement, be taken as conclusive of the
amount of such average annual railway operating income.



12

Every such agreement shall provide that any Federal taxes under
the Act of October third, nineteen hundred and seventeen, or Acts
in addition thereto or in amendment thereof, commonly called war
taxes, assessed for the period of Federal control beginning January
first, nineteen hundred and eighteen, or any part of such period, shall
be paid by the carrier out of its own funds, or shall be charged against
or deducted from the just compensation; that other taxes assessed
\mder Federal or any other governmental authority for the period
of Federal control or any part thereof, either on the property used
under such Federal control or on the right to operate as a carrier, or
on the revenues or any part thereof derived from operation (not
including, however, assessments for public improvements or taxes
assessed on property under construction, and chargeable under
the classification of the Intei'state Commerce Commission to invest-
ment in road and equipment), shall be paid out of revenues derived
from railway operations while under Federal control; that all taxes
assessed under Federal or any other governmental authority for
the period prior to January first, nineteen hundred and eighteen,
whenever levied or payable, shall be paid by the carrier out of its
own funds, or shall be charged against or deducted from the just
compensation.

Every such agreement shall also contain adequate and appropriate
provisions for the maintenance, repair, renewals, and depreciation
of the property, for the creation of any reserAes or reserve funds
found necessary in connection therewith, and for such accounting
and adjustments of charges and payments, both during and at the
end of Federal control as may be requisite in order that the property
of each carrier may be returned to it in substantially as good repair
and in substantially as complete equipment as it was in at the begin-
ning of Federal control, and also that the United States may, by



Online LibraryUnited States Railroad AdministrationPublic acts, proclamations by the President relating to the United States Railroad Administration, and general orders and circulars issued by the Director General of Railroads to December 31, 1918 → online text (page 1 of 48)