New-York tribune., 1917-12-27
pledged BY TIE Congress OF ih'
United Statos."
Act Of Congress Quoted

1915. entitled "An act making sppro-
priations for the support or the army
for the fscal year ending June 81
1917. and FOR other purposes, as fol-
lows; g.,
"The President, in time Of war, IS
enpowered, through the secretary OF
War. 20 take possession and assume
control Of any system or systems OF
transportation. or any part thereof
and "a utilize the same, 20 the exelu-
SION. as far as may be necessary, OF
an other traffic thereon, for the
transfer or transportation OF troops
war material and equipment, or ior
such other purposes connected with
tie emergency as may be needful or
desirable
And. whereas, 70 has now become
necessary IN the national defence 70
tskc possession and assume control
Of certain systems Of transportation
and TO utilize thc same, TO the cNciu.
sion. as far as may be necessary, OF
other than war traffic thereon for the
TRANSPORTATION OF troops, war ma
terial and equipment therefor, ana
for other reedful and desirable pun
poses connected with the prosecution
OF tho war, So,
Now. therefore. !. Woodrow VIII
sor. President of tho United state,
under and By virtue OF the powers
vested in me BY the foregoing rcso!ul-
lions and statute and by virtue OF al
other powers thereto me enaOhngi CO
hereby. through Newton ID. Baker
Secretary Of War, take possession
and assume control at J . o'clock noon
on the 2Sth day Of December l'i"
Of each and every system OF trans
portation and the appurtenances
thereof located wholly or IN part
within the boundaries OF the conu-
neata. United States and consisting
Of railroads and owned or controileo
svstems of coastwise and inland
transportation, engaged IN general
TRANSFORMATION, whether operated ny
steam or by electric power, lncludlhE
also terminals. terminal companies
and terminal associations, sleeping
and parlor cars. private cars ana pr
vate car lines. elevators, warehouses
telegraph and telephone lines and All
other equipment and appurienances
rommonly used upon or operated as
mart Of such rail or combined rah
and water systems Of transportation
20 The end that such systems OF trans
narration BE utilized for the transfer
and transportation Of troops, war ma
-orial and equipment TO the eNclu-
sion so far as may be necessary o.
an other traffic thereon, and that so
lar As such exclusive use be not
,scessarv or desirable such systems
~ TRANSPORTATION be operated ana
Utilized in the performance OF such
other services as the natiOnal inter
est NAV require and of the usual ana
ordinary business and duties OF COM
mon carriers. .,u
II is hereby directed that the pos
,ession. control, operation and utlll'
zation Of such sportaton systems
borebv bv me undertaken shall De
oxercised by and through William u;
NfcAdoo. who is hereby appointed ana
desiCnated Director General OF Kaii-
,osds Said director may perform
Inc duties imposed upon him, SO long
and 10 such extent as he shall deter
,,ine through the boards Of dlrec-
tors receivers, officers and employees
~ said systems OF transportaIOn'
~r+il and except so far as SAID d.
,ortor shall from time 70 time DF
,..neral or special orders otherwise
3rovidc. the boards Of directors, re-
ccivers. officers and employees OF the
various transportation systems shal'
continue the operation thereof n the
usual and ordinary course OF the
business Of common carriers IN the
names Of their respective companies
Present Laws in Force
Until and except so far as said
director shall from time 10 time
otherwise by general or speclaI OF
ders determine. such systems o.
transportation shall remain SUBJECT
20 ali existing statutes ana oTdels
Of the Interstate Commerce ComIlls-
ion. and 20 all statutes ana ofoeiS
OF regulating commissions o. lhe
various states in which SAID systems
or any part thereof may De situated
but any orders, general or speC'"4,
hereafter made by sand director SHGh
nave paramount authority ana ne
obeyed as such.
Nothing herein shall be construed
as now affecting the possession. ,cp-
Grafton and control Of street elec-
trio passenger railways, including
railways commonly called Interuf-
bans. whether such railways be or
be not owned or controlled By such
railroad companies or systems. By
subsequent order and proclamation
Il and when il shall be found neces-
sarv or desirable, possession. CON
troll OF operation may be taken OF
sll or anv part Of such street rail-
way systems, including subways ana
tunnels. and by subsequent ordeT ana
proclamation possession, control ana
oneration in whole or in part may
also he relinouished 10 the owners
thereof of any part Of the railroad
svs+ems or rail and water systems
possession and control OF Whlch are
hereby assumed.
c Compensation Provided
The director snail as soon as may
he after having assumed such pos
session and control, enter upon ne
,otiations with the several compa-
MES looking TO agreements Tor just
and reasonable compensation Tor the
possession, use and control OF the
respective properties on the basis
of an annual guaranteed compen-
sation. above aecruing depreciation
and the maintenance OF their prop
critics. equivalent. .as nearly as may
he. 10 the average Of the net in
come thereof for the three-year peri
od ending June 80, 1917. the results
of such negotiations TO be reported
TO me for such action as may he APP
propriate and lawful
But nothing herein contained, eX-
pressed or implied, or hereafter done
or suffered hereunder, shall be
deemed in any way 10 impair the
rights OF the stockholders. bond
holders. creditors and other persons
having interests IN said systems Of
transportation. or in the profits
thereof. 20 receive just and adequate
compensation FOR the use and con-
troll and operation OF their property
hereby assumed.
Regular dividends hitherto de-
ciared and maturing interest upon
bonds. debentures and other obliga-