The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1917-12-27
Railroads Are Taken Over
By United States Government

vators, warehouses, telegraph and tel
ephone lines and all other equipment
and appurtenances commonly used
upon or operated as part of such
rail or combined rail and water sys-
TENS of transportation; to the end that
such systems of transportation be util-
lied for the transfer and transporta-
ton of troops, war material and equip
ment, to the exclusion so far as may
be necessary of all other traffic there.
on; and that so far as such exclusive
use be not necessary or desirable. such
systems of 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 posses
sion, 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 railroads. Said director may
perform the duties imposed upon him,
so long and to such extent as he shall
determine through the boards of direc-
tors, 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 board of
directors, the receivers officers and en-
ployes OF the various transportation sys-
TENS shall continue the operation thereof
in the usual and ordinary course of the
business of common carriers, in the
names of their respective companies
Until and except SO far as said di-
rector shall from time to time otherwise
by general or special orders determine
such systems of transportation shall re-
nj In, oil
orders of the interstate commerce COM
mission, 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, general 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, including railways commonly
called lnterurbanS 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 necessary or
desirable, possession, control or opera
ton may be taken of all or any part
or such street railway systems, in
Guiding subways and tunnels and by
subsequent order and proclamation pos
session, control and operation whole or
IN part may also be reluquished to the
owners thereof of any part Of the rail
road systems or rail and water systems.
possession and control of which are
hereby assumed.
THE director shall as soon &c nav
be after having assumed such possess
sion and control enter upon negotiations
with the several companies looking to
agreements for just and reasonable com
pensation for the possession, use and
control of their respective properties in
the basis of an annual guaranteed com
pensatlon, above accruing depreciation
and the maintenance of their properties
equivalent, as nearly as may be. to the
average OF the net operating income for
the three-year period ending June 30,
i9l9-tne results of such negotiations to
be reported to me for such action as
may be appropriate and lawful
But nothing herein contained ex-
pressed 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 persons having interests in said
systems OF transportation or in the prof
its thereof, to receive just and adequate
compensation for the use and control
and operation of their property hereby
assumed.
u,
and maturing interest upon bonds,
debentures and other obligations, may be
paid IN due course; and such regular
dividends and interest may continue to
be paid until and unless the said drec-
tor shall from time to time otherwise,
by general or special oroers, determine;
and, subject to the approval of the di-
rector, the various carriers may agree
upon and arrange for the renewal and
extension of maturing obligations
Except with the prior written assent
of said director, no attachment 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 COM
mon carriers; but suits may be brought
by and against said carriers and iudg-
ments rendered as hitherto until and ex-
cept so far as said director may, by
general or special orders, otherwise de-
termine.
From and after 12 o'clock on said 2sth
day of December, 1917, all transportation
systems included in this order and
proclamation shall conclusiveIy be
deemed within the possession and con-
troll of said director without further act
or notice. But for the purpose of ac-
counting said possession and control
shall date from y o'clock midnight on
December 81, 1917
III NithcSS WIiSIcOi, HdNC iiCi GulitO
set my hand and caused the seal of the
United States to be affixed.
Ozone by the President, through New
ton d. Baker Secretary of War; in the
District of Columbia, this 26th day of
December, in the year of our Lord, 1917,
and of the Importance of the United
States, lat.
WOODROW WILSON,"
"NEWTON d. BAKER,
Secretary of War"
''Bv the President