South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-12-27
Presidents Proclamation
Taking Over Railways

1T is hereby directed that the
possession. control. operation and
utilization of such transportatiO 2
systems hereby 10y me undertake.
shall be exercised 10y and through
I William G.. McAdoo. who is hereby
appointed and designated director
general of railroads. Said director
may perform the duties imposed up
on him. SO long and 10 such extent
us, he shall determine, through the
boards Of directors. receivers. officers
transportation. Until and except
SO far as said director shall
from time TO time 10y general OF
special orders. otherwise provide
the boards of directors, receivers. Of
ticers and employees Of the various
transportation systems shall continue
the operation thereof in the usual
and ordinary course Of the business
of common carriers, ia the names of
their respective companies.
Until and except so far as said
director shall from time TO time 9th
erwise by general or special orders
determine, such systems of transpor-
tation shall remain subject 10 the
existing conditions, and orders Of
the interstate commerce commission
and 70 all statutes and all orders Of
regulating commissions Of the var
/ ious states in which said systems
or any part thereof may be situated.
But any orders, general or special.
hereafter made by said director.
shall have paramount authority and
be obeyed as such.
Nothing herein shall be con-
strued as now affecting the posses
sion, operation and control of street
electric passenger railways. includ
ing railways commonly called inter
urbans whether such railways be or
be not owned or controlled by such
railroad companies or systems. BY
subsequent order and proclamation
if and when it shall be found nee
essary or desirable. possession, con-
troll, or operation may be taken OF
all or any part of such street rail
way systems including subways and
tunnels and by subsequent order
and proclamation possession. control
and operation i'm whole or in part
may also be relinquished 10 the
owners thereof of any part of the
railroad systems or rail and water
systems. possession and control Of
which are hereby assumed.
Must Get Average Income.
The director shall as soon rs may
he after having assumed such pos
session and control enter upon ne
gotta tons with the several compa-
MES looking To agreements for just
and reasonable compensation for the
possession, use and ontrol Of their
respective properties on the basis
of an annual guaranteed compensa-
ZION, above accruing depreciation
and the maintenance OF their prop
critics equivalent, as nearly as may
be, TO the average of the net operat-
ing income thereof for the three
year period ending June 30. 1911
the results OF such negotiations TO
be reported to me- FOR such action
as may be appropriate and lawful
But nothing herein contained
expressed or implied or hereafter
done or suffered hereunder. shall bC
deemed in any way 10 impair the
rights Of the stockholders. bondhold-
ars. creditors and other persons hav-
ing interests i'm said systems Of trans
portation or in the profits thereon
70 receive just and adequate com
pensation for the use and control
and operation of their property here
by assumed.
Regular dividends hitherto de-
clared and maturing interest upon
bonds. debentures and other oblea
tions. may be paid in due course
and such regular dividends and in
terest may continue 20 be paid until
and unless the said director shall
from time 10 time otherwise by gen
eral or special orders determine
and subject 20 the approval OF the
director, the various carriers may
agree upon and arrange for the re
newal and extension Of maturing OBJ
legations.
Except with the prior written as
sent of said director no attachment
DN 1Alt.-slt plNNEro OA Ala fANh ~ III %
shall be levied or in against any OF
the property used by any Of said
transportation systems in the con
duct CO their business as common
carriers but suits may be brought
by and against said carriers and
judgments rendered as hitherto un-
til and except so far az said director
may. by general or special orders,
otherwise determine
Begins ut Noon Friday.
From and after - o'clock or
said 2Sth day Of December. 1917. al!
transportation systems included iu
this order and proclamation shall
conclusively be deemed within the
possession and control OF said d
rector without act or notice. j.
for the purpose Of accoultiu- sass.
possession and contrOl Sb~,i date