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 deductions from the just compensations or by other proper means and charges be reimbursed for tlie cost of any additions, repairs, renewals, and betterments to such property not justly chargeable to the United States; in making such accounting and adjustments, duo consideration shall be given to the amounts expended or reserved by each carrier for maintenance, repairs, reneAvals, and depreciation during the three years ended June thirtieth, nineteen hundred and seventeen, to the condition of the property at the beginning and at the end of Federal control and to any other pertinent facts and circumstances. The President is further authorized in such agi'eemcnt to make all other reasonable provisions, not inconsistent w'ith the provisions of this Act or of the Act entitled " An Act making appropriations for the support of the Army for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and for other purposes," approved 13 August twenty-ninth, nineteen hundred and sixteen, that he may deem necessary or proper for such Federal control or for the deter- mination of the mutual rights and obligations of the parties to the agreement arising from or out of such Federal control. If the President shall find that the condition of anj^ carrier was during all or a substantial portion of the period of three years ended June thirtieth, nineteen hundred and seventeen, because of non- operation, receivei'ship, or Avhere recent expenditures for additions or improvements or equipment were not fully reflected in the operat- ing railway income of said throe years or a substantial portion thereof, or because of any undeveloped or abnormal conditions, so excep- tional as to make the basis of earnings hereinabove provided for plainly inequitable as a fair measure of just compensation, then the President may make with tlie carrier such agreement for such amount as just compensation as under the circumstances of the particular case he shall find just. That every railroad not owned, controlled, or operated by another carrier company, and which has heretofore competed for traffic with a railroad or railroads of which the President has taken the posses- sion, use, and control, or which connects with such railroads and is engaged as a common carrier in general transportation, shall be held and considered as within " Federal control," as herein defined, and necessary for the prosecution of the war, and shall be entitled to the benefit of all the provisions of this Act : Provided^ however^ That nothing in this paragi'aph shall be construed as including any street or interurban electric railway which has as its principal source of operating revenue urban, suburban, or interurban passenger traffic, or sale of power, heat and light, or both. The agreement shall also provide that the carrier shall accept all the terms and conditions of this act and any regulation or order made by or through the President under authority of this act or of that por- tion of the act entitled " An act making appropriations for the sup- port of the Army for the fiscal year ending June thirtieth, nineteen liundred and scA-enteen, and for other purposes." approved August twenty-ninth, nineteen hundred and sixteen, which authorizes the President in time of war to take possession, assume control, and util- ize systems of transportation. Sec. 2. That if no such agreement is made, or pending the execution of an agreement, the President ma}' nevertheless pay to any carrier while under Federal control an annual amount. pa3^able in reasonable installments, not exceeding ninety per centum of the estimated annual amount of just compensation, remitting such carrier, in case where no agreement is made, to its legal rights for any balance claiuied to the remedies provided in section three hereof. Any amount thereafter found due such carrier above the amount paid 14 shall bear interest at the rate of six per centum per annum. The acceptance of any benefits under this section shall constitute an acceptance by the carrier of all the provisions of this Act and shall obligate the carrier to pay to the United States, with interest at the rate of six per centum per annum from a date or dates fixed in pro- ceedings under section three, the amount by which the sums received under this section exceed the sum found due in such proceedings. Sec. 3. That all claims for just compensation not adjusted (as provided in section one) shall, on the application of the President or of any carrier, be submitted to boards, each consisting of three ref- erees to be appointed by the Interstate Commerce Conmiission, mem- bers of which and the official force thereof being eligible for service on such boards without additional compensation. Such boards of referees are hereby authorized to summon witnesses, require the pro- duction of records, books, correspondence, documents, memoranda, and other papers, view properties, administer oaths, and may hold hearings in Washington and elsewhere, as their duties and the con- venience of the parties may require. In case of disobedience to a subpoena the board may invoke the aid of any district court of the United States in requiring the attendance and testimony of witnesses and the production of documentary evidence, and such court within the jurisdiction of which such inquiry is carried on may, in case of contumacy or refusal to obey a subpoena issued to any person, corpo- ration, partnership, or association, issue an order requiring appeai- ance before the board, or the production of documentai-y evidence if so ordered, or the giving of evidence touching the matter in question ; and any failure to obey such order of the court may be punished by such court as a contempt thereof. Such cases may be heard separately or together or by classes, by such boards as the Interstate Commerce Commission in the first instance, or any board of referees to which any such cases shall be referred may determine. Said boards shall give full hearings to such carriers and to the United States; shall consider all the facts and circumstances, and shall report as soon as practicable in each case to the President the just compensation, cal- culated on an annual basis and otherwise in such form as to be con- venient and available for the making of such agreement as is author- ized in section one. Tlic President is authorized to enter into an agreement with such carrier for just compensation ui)on a basis not in excess of that reported by such board, and may include therein provisions similar to those authorized under section one. Failing such agreement, either the United States or such carrier may file a petition in the Court of Claims for the purpose of determining the amoimt of such just compensation, and in the proceedings in said court the report of said referees shall be prima facie evidence of the amount of just compensation and of the facts therein stated. Pro- 15 ceedings in the Court of Claims under this section shall be given precedence and expedited in every practicable way. Sec. 4. That the just compensation that may be determined as hereinbefore provided b}' agreement or that may be adjudicated by the Court of Claims, shall be increased by an amount reckoned at a reasonable rate per centum to be fixed by the President upon the cost of any additions and betterments, less retirements, and upon the cost of road extensions to the property of such carrier made by such carrier with the approval of or by order of the President Avhile such property is under Federal control. Sec. 5. That no carrier wliile under Federal control shall, without the prior approval of the President, declare or pay any dividend in excess of its regular rate of dividends during the three years ended June thirtieth, nineteen hundred and seventeen: Provided-^ hoioever^ That such carriers as have paid no regular dividends or no dividends during said period may, with the prior approval of the President, pay dividends at such rate as the President may determine. Sec. 6. That the sum of $500,000,000 is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, which, together with any funds available from any operating income of said carriers, may be used by the President as a revolving fund for the purpose of paying the expenses of the Federal control, and so far as necessary the amount of just compensation, and to provide terminals, motive power, cars, and other necessary equipment, such terminals, motive power, cars, and equipment to be used and ac- counted for as the President may direct and to be disposed of as Congress may hereafter by law provide. The President may also make or order any carrier to make any additions, betterments, or road extensions, and to provide terminals, motive power, cars, and other equipment necessary or desirable for war purposes or in the public interest on or in connection with the property of any carrier. He may from said revolving fund advance to such carrier all or an}^ part of the expense of such additions, bet- terments, or road extensions, and to provide terminals, motive power, cars, and other necessary equipment so ordered and con- structed by such carrier or by the President, such advances to be charged against such carrier and to bear interest at such rate and be payable on such terms as may be determined by the President, to the end that the United States may be fully reimbursed for any sums so advanced. Any loss claimed by any carrier by reason of any such additions, betterments, or road extensions so ordered and constructed may be determined by agreement between the President and such carrier; failing such agreement the amount of such loss shall be ascertained as provided in section three hereof. 16 From said revolving fund the President ma^- expend sucli an amount as he may deem necessarj^ or desirable for the utilization and operation of canals, or for the purchase, construction, or utiliza- tion and operation of boats, barges, tugs, and other transportation facilities on the inland, canal, and coastwise waterways, and may in the operation and use of such facilities create or employ such agen- cies and enter into such contracts and agreements as he shall deem in the public interest. Sec. 7. That for the purpose of providing funds requisite for maturing obligations or for other legal and proper expenditures, or for reorganizing railroads in receivership, carriers may, during the period of Federal control, issue such bonds, notes, equipment trust certificates, stock, and other forms of securities, secured or unse- cured by mortgage, as the President may first approve as consistent with the public interest. The President may, out of the revolving fund created by this act, purchase for the United States all or any part of such securities at prices not exceeding par, and may sell such securities whenever in his judgment it is desirable at prices not less than the cost thereof. Any securities so purchased shall be held b}^ the Secretary of the Treasury, who shall, under the direction of the President, represent the United States in all matters in connec- tion therewith in the same manner as a private holder thereof. The President shall each year as soon as practicable after January first, cause a detailed report to be submitted to the Congress of all receipts and expenditures made under this section and section six during the preceding calendar year. Sec. 8. That the President may execute any of the powers herein and heretofore granted him with relation to Federal control through such agencies as he may determine, and may fix the reasonable compensation for the performance of services in connection there- with, and may avail himself of the advice, assistance, and coopera- tion of the Interstate Connnerce Commission and of the members and employees thereof, and may also call upon any department, com- mission, or board of the Government for such services as he may deem expedient. But no such official or employee of the United States shall receive any additional compensation for such services except as now permitted by law. Sec. 9. That the provisions of the act entitled "An act making appropriations for the support of the Army for the fiscal year end- ing June thirtieth, nineteen hundred and seventeen, and for other purposes," approved August twenty-ninth, nineteen hundred and six- teen, shall remain in force and effect except as expressly modified and restricted by this act; and the President, in addition to the }H)\vers conferred by this act, shall have and is hereby given such other and further powers necessary or appropriate to give effect to 17 the powers herein and heretofore conferred. The provisions of this act shall also apply to any carriers to which Federal control may bo hereafter extended. Sec. 10. That carriers while under Federal control shall be sub- ject to all laws and liabilities as common carriers, whether arising under State or Federal laws or at common law, except in so far as may be inconsistent with the provisions of this act or any other act applicable to such Federal control or with any order of the President. Actions at law or suits in equity may be brought by and against such carriers and judgments rendered as noAv provided by law; and in any action at law or suit in equity' against the carrier, no defense shall be made thereto upon the ground that the carrier is an instnimentality or agency of the Federal Government. Xor shall any such carrier be entitled to have transferred to a Federal court any action heretofore or hereafter instituted by or against it, which action was not so transferable prior to the Federal control of such carrier; and any action which has heretofore been so transferred because of such Federal control or of any act of Congress or official order or proclamation relating thereto shall upon motion of either part}?^ be transferred to the court in which it was originally insti- tuted. But no process, mesne or final, shall be levied against any property under such Federal control. That during the period of Federal control, whenever in his opinion the public interest requires, the President may initiate rates, fares, charges, classifications, regulations, and practices by filing the same with the Interstate Commerce Commission, which said rates, fares, charges, classifications, regidations, and practices shall not be sus- pended by the commission pending final determination. Said rates, fares, charges, classifications, regulations, and prac- tices shall be reasonable and just and shall take effect at such time and upon such notice as he may direct, but the Interstate Commerce Commission, shall, upon complaint, enter upon a hearing concern- ing the justness and reasonableness of so much of any order of the President as establishes or changes any rate, fare, charge, classifica- tion, regulation, or practice of any carrier under Federal control, and may consider all the facts and circumstances existing at the time of the making of the same. In determining any question con- cerning an}' such rates, fares, charges, classifications, regulations, or practices or changes therein, the Interstate Commerce Commission I shall give due consideration to the fact that the transportation systems are being operated under a unified and coordinated national control and not in competition. After full hearing the commission may make such findings and orders as are authorized by the act to regulate commerce as amended, 105889°— 19 2 18 and said findings and orders shall be enforced as provided in said act : Provided, however, That when the President shall find and certify- to the Interstate Commerce Commission that in order to defray the expenses of Federal control and operation fairly chargeable to rail- way operating expenses, and also to pay railway tax accruals other than war taxes, net rents for joint facilities and equipment, and compensation to the carriers, operating as a unit, it is necessary to increase the railway operating revenues, the Interstate Commerce Commission in determining the justness and reasonableness of any rate, fare, charge, classification, regulation, or practice shall take into consideration said finding and certificate by the President, together with such recommendations as he may make. Sec. 11. That every person or corporation, whether carrier or shipper, or any receiver, trustee, lessee, agent, or person acting for or employed by a carrier or shipper, or other person, who shall knowingly violate or fail to observe any of the provisions of this act, or shall knowingly interfere wdth or impede the possession, use, operation, or control of any railroad property, railroad, or trans- portation system hitherto or hereafter taken over by the President, or shall knowingly violate any of the provisions of any order or regu- lation made in pursuance of this act, shall be guilty of a misdemeanor, and shall, upon conviction, be punished by a fine of not more than $5,000, or, if a person, by imprisonment for not more than two years, or both. Each independent transaction constituting a viola- tion of, or a failure to observe, any of the provisions of this act, or any order entered in pursuance hereof, shall constitute a separate offense. For the taking or conversion to his own use or the embezzle- ment of money or property derived from or used in connection with the possession, use, or operation of said railroads or transportation systems, the criminal statutes of the United States, as well as the criminal statutes of the various States where applicable, shall apply to all officers, agents, and employees engaged in said railroad and transportation service, while the same is under Federal control, to the same extent as to persons employed in the regular service of the United States. Prosecutions for violations of this act or of any order entered hereunder shall be in the district courts of the United States, under the direction of the Attorney General, in accordance with the procedure for the collection and imposing of fines and penalties now existing in said courts. Sec. 12. That moneys and other property derived from the opera- tion of the carriers during Federal control are hereby declared to be the property of the United States. Unless otherwise directed by the President, such moneys shall not be covered into the Treasury, but such moneys and property shall remain in the custody of the same officers, and the accounting thereof shall be in the same manner 19 and form as before Federal control. Disbursements therefrom shall, without further appi-opriation, be made in the same manner as before Federal control and for such purposes as under the Inter- state Commerce Commission classification of accounts in force on December twenty-seventh, nineteen hundred and seventeen, are chargeable to operating expenses or to railway tax accruals and for such other purposes in connection with Federal control as the President may direct, except that taxes under Titles One and Two of the act entitled "An act to provide revenue to defray war expenses, and for other purposes," approved October third, nineteen hundred and seventeen, or any act in addition thereto or in amendment thereof, shall bo paid by the carrier out of its own funds. If Federal control begins or ends during the tax year for which any taxes so chargeable to railway tax accruals are assessed, the taxes for such year shall he apportioned to the date of the beginning or ending of such Federal control, and disbursements shall be made only for that portion of such taxes as is due for the part of such tax year which falls within the period of Federal control. At such periods as the President may direct, the books shall be closed and the balange of revenues over disbursements shall be covered into the Treasury of the United States to the credit of the revolving fund created by this act. If such revenues are insufficient to meet such disbursements, the deficit shall be paid out of such revolving fund in such manner as the President may direct. Sec. 13. That all pending cases in the courts of the United States affecting railroads or other transportation systems brought under the act to regulate commerce, approved February fourth, eighteen hundred and eighty-seven, as amended and supplemented, including the commodities clause, so called, or under the act to protect trade and commerce against unlawful restraints and monopolies, approved July second, eighteen hundred and ninety, and amendments thereto, shall proceed to final determination as soon as may be, as if the United States had not assumed control of transportation systems; but in any such case the court having jurisdiction may, upon the application of the United States, stay execution of final judgment or decree until such time as it shall deem proper. Sec. 11. That the Federal control of railroads and transportation systems herein and heretofore provided for shall continue for and during the period of the war and for a reasonable time thereafter, which shall not exceed one year and nine months next following the date of the proclamation by the President of the exchange of ratifica- tions of the treaty of peace : Provided, however, That the President may, prior to July first, nineteen hundred and eighteen, relinquish control of all or any part of any railroad or system of transportation, further Federal control of which the President shall deem not needful 20 or desirable ; and the President may at any time during tlie period of Federal control agree with the owners thereof to relinquish all or any part of any railroad or system of transportation. The President may lelinquish all railroads and systems of transportation under Federal control at any time he shall deem such action needful or desirable. No right to compensation shall accrue to such owners from and after the date of relinquishment for the property so relinquished. Sec. 15. That nothing in this act shall be construed to amend, repeal, impair, or affect the existing laws or powers of the States in relation to taxation or the lawful police regulations of the several States, except wherein such laws, powers, or regulations may affect the transportation of troops, war materials, Government supplies, or the issue of stocks and bonds. Sec. 16. That this act is expressly declared to be emergency legislation enacted to meet conditions growing out of war; and nothing herein is to be construed as expressing or prejudicing the future policy of the Federal Government concerning the ownership, control, or regulation of carriers or the method or basis of the capitalization thereof. Approved. IMarch 21, lOlS. Bv THE President of the T'ntted States or America. A PKOCLAMATIOX. AT'THORIZTNG THE DIRECTOR GENERAL OF RAILROADS TO EXERCISE POWERS. CONFERRED ON THE PRESIDENT BY CONGRESS. Whereas, by the proclamation dated December 20, 1917, taking over each and every system of transportation and the appurtenances thereof located wholly or in part within the boundaries of the conti- nental United States, it was provided " 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 Railroads,'' and the said William G. McAdoo pursuant to said proclamation entered upon and has continued to discharge the duties of Director General of Railroads as provided therein; and Whereas, since the issuance of said proclamation the Congress of the United States has passed an act entitled An Act to Provide for th/i Operation of Trans poi-fation Systems while imder Federal Con- trol, for the Just Compematlon of their Owners, ami for other Pur- poses, which act was duly approved by me on the 21st day of March, 1918, and is now in full force and effect: and in terms confers upon the President the powers specified therein and the authority to carry the same into effect: and 21 AYliercas, it is provided in Section 8 of said act that the President may execute any of the powers therein and theretofore granted him with relation to the Federal control of systems of transportation and parts thereof, including railroads, inland waterways, etc., through such agencies as he may determine: NoAv, therefore, I, Woodiioav AVilsox, President of the United Sitates, under and by virtue of the powers and authority so vested in me by said act and of all other powers me hereto enabling, do hereby authorize the said William G. McAdoo, Director General of Railroads as aforesaid, either personally or through such divisions, agencies, or persons as he may appoint, and in his own name or in the name of such divisions, agencies, or persons, or in the name of the President to agree with the carriers or any of them or with any other person in interest, upon the amount of compensation to be paid pursuant to law, and to sign, seal, and deliver in his own name or in the name of the President or in the name of the United States such agreements as may be necessary and expedient with the several carriers or other persons in interest respecting compensation, or any other matter concerning which it may be necessary or expedient to deal and to make any and all contracts, agreements, or obligations necessary or expedient and to issue any and all orders which may in any way be found necessary and expedient in connection with the Federal control of systems of transportation, railroads, and inland waterways as fully in all respects as the President is authorized to do, and generally to do and perform all and singular all acts and things and to exercise all and singular the powers and duties which in and by the said act, or any other act in relation to the subject hereof, the President is authorized to do and perform. In witness whereof, I have hereunto set my hand and caused the seal of the United States to be affixed. Done in the District of Coluuibia this 29th day of March in the year of our Lord one thousand nine hundred and eighteen, and of the Independence of the United States of America the one hundred and forty -second. fSEAL.l WOODROAV WiLSON. By the President: Robert Lansing, Secretary of State. By the President of the LTnited States of America. A PROCLAMATIOX. POSSESSION AND CONTROL OF CERTAIN TRANSPORTATION SYSTEMS. lAliereas the Congress of the United States, in the exercise of the constitutional authority vested in them, by joint resolution of the 22 Senate and House of Representatives bearing date April 6, 1917, re- solved : That the state of war between the United States and the Imperial German Government which has thus been thrust upon the United States is hereby formally 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 support of the Army for the fiscal year ending June 30, 1917, and for other pur- poses," 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 needful or desirable. And whereas it has now become necessary in the national defense to take possession and assume control of certain systems of transpor- tation and to utilize the same to the exclusion, as far as may be neces- sary, of other than war traffic thereon, for the transportation of troops, war material, and equipment therefor, and for other needful and desirable purposes connected with the prosecution of the war : Now, therefore, I, Woodrow 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 thereto me enabling, do hereby, through Benedict Crowell, Acting Secretary' of War, take possession and assume control at 12.01 a. m., on the 13th day of April, 1918, of each and every system of transpor- tation and the appurtenances tliereof as follows, to wit : Clyde Steam- ship Company, a corporation of the State of Maine; Mallory Steam- ship Company, a corporation of the State of Maine; Merchants & Miners Transportation Company, a corporation of the State of Maryland; and Southern Steamship Company, a corporation of the State of Delaware, consisting of steamships, tugs, lighters, barges, 23 ships, boats, and marine craft of any and every kind or description and all the tackle, appurtenances to and appliances thereof, together with all wharves, docks, warehouses, and other property of every kind or nature, real or chattel, owned, leased, chartered, controlled, or used by said companies or either of them in conducting or in connec- tion with said transportation systems, to the end that such systems of transportation be utilized for the transfer and transportation of troops, war material, and equipment to the exclusion so far as may be necessary of all other traffic thereon ; 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 busi- ness and duties of conunon 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. McAcloo, who has been duly appointed and designated Director General of Railroads. Said Director General may perform the duties imposed upon him so long and to such extent as he shall determine, through the boards of di- rectors, officers, and employees of said systems of transportation. Until and except so far as said Director General shall from time to time by general or special orders otherwise provide, the boards of directors, officers, and employees of said transportation systems 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 Director General shall from time to time otherwise by general or special orders determine, such sys- tems of transportation shall remain subject to all existing statutes of the United States and 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 an}^ part thereof may be situated. But any orders, general or special, hereafter made by said Director General, shall have paramount authority and be obeyed as such. The Director General shall, as soon as may be after having as- sumed such possession 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 and fix such just compensation as provided by law. 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 24 profits thereof to receive just and atlequate compensation for the use and control and operation of their property hereby assumed. That none of said carriers while under Federal control shall, with- out the prior approval of the President, declare or pay any dividends in excess of its regular rate of dividends during the three years ended June thirtieth, nineteen hundred and seventeen: Provided^ Jwwever, That such carriers as have paid no regular dividends or no dividends during said period may, Avith the prior approval of the President, pay dividends at such rate as the President may determine. Except with the prior written assent of said Director General, no attachment by mesne process or on execution shall be levied on or against any of the j^roperty used by any of said transportation sys- tems 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 General may, by general or special orders, otherwise determine. From and after 12.01 a. m. on said 13th day of April, 1918, all transportation systems included in this order and proclamation shall conclusively be deemed Avithin the possession and control of said •Director General without further att or notice. 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 Benedict Crowell. Acting Secre- tary of War, in the District of Columbia, this 11th day of April, in the year of our Lord one thousand nine hundred and eighteen, and of the independence of the United States the one hundred and forty- second. [seal.] Woodrow Wilsox. By the President : Egbert Lansing, ^erretory of State, Benedict Croavell,, Acting Secretary of ^V(^:r. By the Presidext of the Txited States of America. A PROCLAMATION. POSSESSION AM) CONTROL OF THE TRANSPORTATION SYSTEM OF THE 150STON. CAPE COD «fc NEW YORK CANAL CO. Whereas the Congress of the United States, in tho exorcise of the constitutional authority vested in them, by joint resolution of tho vScnato and House of Pepresentatives bearing date of April 6, 1917, resolv(Ml : That tho state of war betweon the Ignited States and the Imperial CJerman Govern- ment whirh has thus been thrust upon the I'nited States is hereby formally declared; 25 and that the President be, and he is hereby, authorized and directed to employ the entire naval and militaiy forces of the United States and the resources of the Gov- ernment 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 Amer- ica and the Imperial and Royal Austro-IIungarian Government; and that the Presi- dent 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 a war against the Imperial and Royal Austro-Hungarian Government; and to bring the conflict to a successful termination all the resom'ces 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 support 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 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 equipment, or for such other purposes connected yvith the emergency as may be needful or desirable. 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 transportation of troops, war material, and equipment therefor, and for other needful and desirable pui'poses connected with the prosecution of the war: Now, therefore, I, Woodrow 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 thereto me enablmg, do hereby, through Newton D. Baker, Secretary of War, take possession and assume control at 12.01 a. m, on the 25th day of July, 1918, of the following system of transportation and the appurtenances thereof, to wit, the canal and other property of the Boston, Cape Cod & New York Canal Co., a corporation organized under the laws of the Commonwealth of Massachusetts, consisting of a ship canal extending from Cape Cod Bay to Buzzards Ba}^ in Massa- chusetts, with all the appurtenances and equipment of said canal, including all the lands, easements, wharves, docks, buildings, tugs, barges, ships, boats, tackle, appliances, and all other property of whatsoever kind owned, leased, chartered, controlled, or used b}^ the said corporation in the maintenance and operation of said canal or in connection with the towage, pilotage, or anchorage of vessels pass- ing through the same. 26 To the end that said system of transportation be utilized for the transfer and transportation of troops, war material, and equipment, to the exclusion so far as may be necessary of all other traffic thereon, and that so far as such exclusive use be not necessary or desirable such system of transportation be operated and utilized in the performance oi such other services as the national interest may require and of the usual and ordinary operation of the said transportation system. It is hereby directed that the possession, control, operation, and utilization of such transportation system, hereby by me undertaken, shall be exercised by and through William G. McAdoo, who has been duly appointed and designated Director General of Railroads. Said Director General may perform the duties imposed upon him, so long and to such extent as he shall determine, through the board of di- rectors, officers, and employees of said corporation, or through such other agents or agencies as he may from time to time appoint. Until and except so far as said Dhector General shall from time to time by general or special ordei-s otherwise provide, the board of dhectors, officers, and employees of said corporation shall continue the usual and ordinary operation of said transportation system in the name of said corporation. Until and except so far as said Director General shall from time to time otherwise by general or special orders determine, such system of transportation shall remain subject to all existing statutes of the United States and to all statutes and orders of regulating commis- sions of the Commonwealth of Massachusetts; but any orders, general or special, hereafter made by said Director General shall have para- mount authority and be obeyed as such. The Director General shall, as soon as may be after havmg assumed sucli possession and control, enter upon negotiations with the said corporation looking to an agreement for just and reasonable com- pensation for the possession, use, and control of its property. Except with the prior written assent of said Director General, no attachment by mesne process or on execution shall during Federal control be levied on or against any of the property of said corporation or used by said transportation system in the maintenance and opera- tion of said canal while under Federal control; but suits may be brought by and against the said corporation and judgments rendered as hitherto until and except so far as said Director General may, by general or special orders, otherwise determine. From and after 12.01 a. m., on said 25th day of July, 1918, the transportation system included in this order and proclamation shall conclusively be deemed within the possession and control of said Director General without further act or notice. In witness whereof I have hereunto set my hand and caused the seal of the United States to be affixed. 27 Done by the President, through N"e\, .on D. Bakjr, Secretary of War, in the District of Columbia this 22d day of July, in the year of our Lord one thousand nine liundred and eighteen and of the inde- pendence of the I'nitod States the one hundred and forty-third. [seal.] Woodrow Wilson. By the President: Frank L. Polk, Acting Secretary of State. NEvrTON D. Baker, Secretary of War. possession and control of a:\rerican ratlway express company. By the President of the United States of America. A PKOCLAMATIOX. POSSESSIOX A?«D CONTROL OF A CERTAIN TRANSPORTATION SYSTEM. Whereas the organizations for the conduct of the express business over numerous systems oi transportation which have been duly placed under Federal control, and pertaining to such systems of transpor- tation, have been consolidated into the American Eailway Express Company which has been made the sole agent of the Government for conducting tlie express business, with the result that the entire tran - portation system of said Express Company has been necessarily i i substance and effect placed under Federal control, and Whereas it is desirable, in order to administer to the best advan- tage the transportation business and operations of the American Rail- way Express System to make it specifically clear by this Proclama- tion that the President has the possession, use, control and operation of the entire transportation system of the American Eailway Express Company, Now, Therefore, I, Woodrow Wilson, President of the United States, under and by virtue of the powers vested in me by law do hereby, through Xewton D. Baker, Secretary of War, take possession, and assume control at 12 o'clock noon on the 18th day of November, 1918, of that certain system of transportation called the American Railway Express Company and all of its appurtenances and property of every kind or nature, directly or indirectly, owned, leased, char- tered, controlled, or used in the conduct of, or in connection with, its express business. It is hereby further directed that the possession, control, operation and utilization of said express transportation system hereby by me undertaken shall be exercised by and through William G. McAdoo, heretofore appointed Director General of Railroads, Avith all the powers conferred upon him by the said Proclamations of December 28 26. 1917, and March 29, 1918, respectively, together with all and sin- gular the powers conferred upon the President by the Act of Con- gress entitled, "An Act to Provide for the Operation of Transporta- tion Systems while under Federal Control, for the Just Compensa- tion of their Owners, and for Other Purposes," approved March 21, 1918. The said Director General of Kailroads may perform the duties hereby imposed upon him, so long and to such an extent as he shall determine, through the Board of Directors, officers and employees of the said American Railway Express Company, under the contract already made, and dated the twenty-sixth day of June, 1918, be- tween the said Director General of Railroads and said American Railway Express Company, and until and except so far as said Director General shall from time to time by general or special orders otherwise provide, the P>oard of Directors, officers and em- ployees of said Company shall continue the operation thereof in the usual and ordinar}^ course under such contract. From and after 12 o'clock noon on said 18th November, 1918. the said transportation system shall conclusively be deemed within the possession and control of said Director General without further act or notice. 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 Newton D. Baker, Secre- tary of War, in the District of Columbia, this 16th day [seal.] of November, in the year of our Lord, one thousand nine hundred and eighteen, and of the independence of the United States the one hundred and forty-third. WOODROW WiLSOX. B}' tlie President : Robert Lansing, Secrttary of State. Newtox D. Baker, Secretary of ^Var. (No. 1497.); Order of Eelixquishment. Whereas in the exercise of the war power by proclamation dated April 11, 1918, the President of the United States through Benedict Crowell, Acting Secretary of War, took possession and assumed con- trol as of the thirteenth day of April, 1918, of the following sys- tems of transportation and appurtenances thereof, to wit: Clyde Steamship Company, a corporation of the State of Maine; Mallory Steamship Company, a corporation of the State of Maine; Mer- chants and Miners Transportation Company, a corporation of the State of Maryland ; and Southern Steamship Company, a corpora- tion of the State of Delaware; consisting of steamships, tugs, lighters, barges, ships, boats, and marine craft of any and every kind or description and all the tackle, appurtenances to and appliances thereof, together Avith all wharves, docks, warehouses, and other property of every kind or nature, real or chattel, owned, leased, chartered,.eontroiled, or used by said companies or either of them in conducting or in connection with said transportation systems to the, end that such systems be utilized for the transfer and transporta- tion of troops, war material, and equipment, to the exclusion as far as may be necessary, of all other traffic thereon, etc., the said possession, control, operation, and utilization to be exercised by and through the undersigned William G. McAdoo, Director General of Railroads; and Whereas the emergency which made such exercise of the war power necessary and desirable has by reason of the signing of an armistice with the enemies of the United States ceased, and the use of the transportation systems aforesaid is no longer necessary for the transfer and transportation of troops, war material, and equip- ment or otherwise for the war purposes of the Government : Now, Therefore, I, William G. McAdoo, Director General of Eailroads, by virtue of the power conferred upon me by the President of the United States, do hereby relinquish from Federal control effec- tive December 6, 1918. at 12 : 01 a. m., the said Clyde Steamship Com- pany, Mallory Steamship Company, Merchants and Miners Trans- portation Company, and Southern Steamship Company, together with all of the steamships, tugs, lighters, barges, ships, boats, and marine craft of any and every kind or description and all the other (29) 30 tackle, appurtenances, wharves, docks, warehouses,, and other prop- erty as described and set forth in the proclamation of the President, dated April 11, 1918, as aforesaid, and restore the same to the pos- session of their respective owners. For accounting purposes, this order may be treated as eflPecti\-e December first at 12 : 01 a. m. Given under my hand as Director General of Railroads, this fifth day of December, 1918. W. G. McAdoo, Director General of Railroads. Opinion Sustaixixg the authority of W. G. McAdoo, Director General of Railroads, re Ge:neral Orders 18 and 18-A, and THEIR VALIDITY UNDER THE FEDERAL- CoNTROL AcT APPRO\'ED MaRCH 21, 1918, and the constitutionality of said act, by honorable Jacob Trieber, United States District Judge for the Eastern District of Arkansas, sitting in the Eastern Division of the Eastern District of Missouri. In the District Court of the United States for the Eastern Division of the Eastern District of Missouri. Nellie Wainwright, Administratrix, Etc., Plaintiff. V. Pennsylvania Railroad Company, Defendant. Xo. 4893. The plaintiff on May 6, 1918, instituted this action to recover dam- ages under the employers' liability act for the death of her husband, alleged to have resulted from injuries sustained on December 26, 1917, while in the service of the defendant and while both were engaged in interstate commerce. The defendant filed a plea in abatement, alleging as causes: 1. The Pennsylvania Railroad Company, defendant herein, is a common carrier now under control of the United States Railroad Administration. 2. The plaintiff herein, and the deceased. John Wainwright, re- sided at the time of the accrual of the cause of action stated in the plaintiff's petition in the city of Pittsburgh, State of Pennsylvania. 3. That the i^lace of trial, to wit: City of St. Louis, State of Missouri, is far removed from the place where the plaintiff was in- jured and resided at the time of the accrual of this action, to wit: City of Pittsburgh, Pa. ; that the trial of this suit in the city of St. Louis, Mo., will necessitate the summoning of men, to wit: Engine- man N. Carlson, Fireman W. J. Corbett, Conductor W. Baker, and Brakeman J. Wainwright, now operating trains in points distant from the place of trial and keep them for a considerable period of time from said work of operating trains, all of which will greatly prejudice the interests of the Government in maintaining railroad traffic for war purposes. And the defendant further states that the above specifications of facts, enumerated above, constitute to all intents and purposes a case of abatement under General Order Xo. 26, promulgated by the United States Railroad Administration on May 23, 1918, and Gen- (31) 32 eral Order No. 18-A, promulgated l>y the United States Railroad Administration on May 18, 1918. To this plea the plaintiff demurred. The general orders pleaded by the defendant were promulgated by the Director General of the United States Railroad Administra- tion. General Order No. 18, made on April 9, 1918, reads: Whereas the act of Congress approved March 21, 1918, entitled " An act to provide for the operation of transportation systems while under Federal con- trol," provides (sec. 10), "That carriers while under Federal control shall be subject to all laws and liabilities as common carriers, whether arising under State or Federal laws or at common law, except in so far as may be inconsis- tent with the provisions of this act or with any order of the President, * * *. But no process, mesne or final, shall be levied against any property under such Federal control " ; and Whereas it appears that suits against the carriers for personal injuries, freight and damage claims are being brought in States and jurisdictions far j-emote from the place where plaintiffs reside or where the cause of action arose, the effect thereof being that men operating the trains engaged in hauling war materials, troops, munitions, or supplies are required to leave their trains and attend court as witnesses, and travel sometimes for hundreds of miles from their work, necessitating absence from their trains for days and some- times for a week or more, which practice is highly prejudicial to the just interests of the Government and seriously interferes with the physical operation of the railroads; and the practice of suing in remote jurisdictions is not necessary for the protection of the rights or the just interests of plaintifts ; It is therefore ordered, That all suits against carriers while under Federal control must l)e brought in the county or district where the plaintiff resides or in the county or district where the cause of action arose. On April 18, 1918, this general order was amended by General Order No. 18-A, as follows: It is therefore ordered that all suits against carriers while under Federal control must ))e brought in the county or district where the plaintiff resided at the time of the accrual of the cause of action or in the county or district where the cause of action arose. As this action was instituted after the pronudgation of General Orders Nos. 18 and 18-A, and no question of limitation can possibly arise, it is unnecessary to refer to or pass upon the effect of General Order No. 20 in disposing of these pleas. These general orders are claimed to have been made by authority vested in the President and the Director General designated by the President by the appropriation act of August 29, 191(), ch. 418, 39 St. C45 and the act of Congress entitled, "An act to provide for the operation of transportation systems while under P'ederal control, for the just compensation of their owners, and for other purposes," ap- proved March 21, 1918. Browning, Mason & Altman. of St. Louis, Mo., for plaintiff. P\)rdyce, Holliday & White, of St. Louis, Mo., for defendant. Mr. E. H. Seneff'and Mr. D. P. Williams, of Pittsburgh, Pa., by leave of the court filed a brief as amivi curi(E. 33 Trieber, district judge, after stating the facts as above. The demurrer to the plea raises two questions of hiw : 1. Assuming that the act of Congress autliorizes the President and the agencies appointed by him to make these regulations, Is the act warranted by the Constitution? 2. Does the act vest the power to make these regulations in the President or the Director General? At the outset of this opinion, it is proper to state that, as this action was originally instituted in a court of the United States, the question Avhether Congress may authorize the general orders in question to ap- ply to the courts of the States is not involved, and therefore can not be determined in this proceeding. What is stated in this opinion is necessarily intended to apply solely to actions instituted in the na- tional courts. Whether, under the war power. Congi'ess may enact laws affecting the maintenance of actions in the State courts, can only be determined when it properly comes before the court. To express an opinion on that question in the instant case would be clearly obiter^ and the court, for this reason, limits this opinion to actions instituted in the national courts. •HAS CONGRESS THE POWER aX) EXACT THIS LEGISLATION, ASSUMING THAT IT Vr^TS THE POWER CLAIMED ON BEHALF OF THE DEFENDANT? That Congi-ess possesses the power to enact legislation of this na- ture, under the Constitution, can not be questioned at this day. There are several grounds upon which it must be sustained. 1. In McCuUoch V. Maryland, 17 U. S. 316, 421, Chief Justice :»Iar- shall delivering the opinion of the court, it was held as a proper canon of the interpretation of the powers of Congi-ess under the Na- tional Constitution, among others : " Let the end be legitimate, let it be within the scope of the Constitution, and all means which are ap- propriate, which are plainly adapted to the end, w^hich are not pro- hibited, but consistent Avith the letter and spirit of the Constitution, are constitutional.'' This rule of construction has never been doubted or questioned by any subsequent decision, but has been uniformly followed, whenever it has been before the courts, and nmst, therefore, be accepted as ele- mentary in the construction of the National Constitution. That there is nothing in the Constitution prohibiting Congress from determining the venue in civil actions is beyond question. Article 1, section 8, clause 11, of the Constitution grants Congress the power to declare war, and clause 12 of that section empowers it to raise and support armies. That by virtue of these provisions of the Constitution, Congress may use all means which are, in its opin- ion, appropriate to that end and not prohibited by some provision 105880°— 10 3 34 of the Constitution has, under the rule established in McCulloch v. Maryland, been settled in Miller v. United States, 78 U. S. 268; Stewart v. Kalin, 78 U. S. 493, 506, 507; reaffirmed, in May field v. Richards, 115 U. S. 137. In Steioart v. Kahn, it was held : " The measures to be taken in carrying on war and to suppress insurrection are not defined. The decision of all such questions rests wholly in the discretion of those to whom the substantial powers involved are confided by the Constitution. "In the latter case the power is not limited to victories in the field and the dispersion of the insurgent forces. It carries with it inher- ently the power to guard against the immediate renewal of the con- flict and to remedy the evils which have arisen from its rise and progress." The same principle was recognized in the Legal Tender cases, 79 U. S. 457, 539, where it was held : " Before we can hold the legal ten- der acts unconstitutional, we must be convinced they were not appro- priate means, or means conducive to the execution of any or all of the powers of Congress, or of the Government, not appropriate in any degree (for we are not judges of the degree of appropriateness), or we must hold that they were prohibited. This brings us to the inquiry whether they were, when enacted, appropriate instrumentali- ties for carrying into effect, or executing any of the known powers of Congi-ess, or of any department of the Government. Plainly to this inquiry, a consideration of the time when they were enacted, and of the circumstances in which the Government then stood, is important. It is not to be denied that acts may be adapted to the exercise of law- ful power, and appropriate to it, in seasons of exigency, which would be inappropriate at other times." See also the address of former Justice Hughes on the " War powers under the Constitution," volume 4-2, American Bar Association, 232, Whether the exigencies existed when Congress enacted this statute Avas for that body to determine and can not be questioned by the courts, if there is any substantial ground therefor. McCulloch v. Maryland, supra, Lottery cases, 188 U. S. 321, 355 ; McDermott v. Wisconsin, 228 IT. S. 115, 128. That there was substantial ground for the enactment of the statute requires no argument. The condi- tions so graphically described in the Legal Tender cases (p. 540) prevail now, and it will conduce to brevity to refer to what was there said, without quoting it in this opinion. That the act was enacted under the war power is not only apparent from its content, but it is expressly declared in section 16 of the act, " to be emergency legislation, enacted to meet conditions growing out of the war," and section 14 provides that the Federal control of rail- roads shall continue not exceeding one year and nine months after the ratification of the treaty of peace. 35 2. Another ground upon which the act nuist be sustained is that the right to maintain an action in any particuhir court is always subject to tlie legislative will. It is only when one is deprived of all rights to maintain an action for the redress of his wrongs that the statute would be obnoxious to the fifth amendment to the Constitution. Con- gress has uniformly exercised that power by providing in what courts suits may be maintained, and in no instance has such an act been held void. Among the many is the act of March 3, 1873, 17 St. 509, authorizing the Attorney General to institute suits against the Union Pacific Railroad Co. for certain acts in any circuit court of the United States. The constitutionality of this act was sustained in United States V. Union PcK-iflc R. R., 98 U. S. 569. The Carmack amend- ment to the interstate-commerce act, approved June 29, 1906, 34 St. 595, authorizes an action against the receiving carrier, regardless of the fact that the loss or damage sued for was caused by a connecting carrier. Its constitutionality was sustained in Atlantic Coast Line V. Riverside -MlUs, 219 U. S. 186. The act of February 21, 1905, chapter 778, 33 Statutes 811, vested the exclusive jurisdiction of ac- tions on bonds of contractors for the construction of public works in the courts of the district in which said contract was to be per- formed and executed. The validity of the act was sustained in United States v. Congress Constrmtlon Co., 222 U. S. 199, 203; Hoj)- kins V. Ellington & Guy, 216 U. S. 655; Ex parte Southwestern Surety Ins. Co., 247 U. S. 19. The Clayton Act, approved October 15, 1914, 38 Statutes 730, 737, section 12, expressly authorizes an ac- tion by the Government, not only in the district wliereof- the defend- ant corporation is an inhabitant, but in any district where it may be found or does business. Section 15 of that act authorizes service of process on other parties than the offending corporation, who are properly joined, in any district where found. The validity of these provisions was sustained in Southern Photo Materkd Co. v. Eastma.n Kodak Co. (D. C), 234 Fed. 955. Every State of the Union has provided by statute the venue for civil actions in its courts. In some States actions may be brought only in the county where the defendant resides ; in some where the defendant resides or may be found ; some actions can only be main- tained in the county in which the cause of action accrued; others where the subject matter of the action is situated : and in some States actions may be maintained in the county where either plaintiff or defendant resides. The various acts are referred to in 22 Encyclo- pedia of Pleading and Practice 790, et sequa. In United States v. Crawford (C. C), 47 Fed. 561, 565, Judge Parker said : " I have no doubt that Congress may provide for serv- ice of process out of the district, as this is a regulation of practice and subject to the legislative control." This was cited with approval 36 by Judge Morrow in United States v. American Lumber Go. (C. C), 80 Fed. 309, and in Sidney L. Bauman, etc.. Co. v. Ha7% 192 Fed. 498, 113 C. C. A. 104. 3. Another ground upon which this provision of the act must bt upheld is that the courts of the United States, inferior to the Supreme Court, are not established by the Constitution, but owe their existence and powers to Congress alone. That they possess no powers not granted by an Act of Congress was determined as early as 1809 in BanJ,- of United States x. Devaux, 9 IT. S. 61, and again in 1812 in United States v. Hudsoi^ 11 U. S. 32, and uniformly adhered to ever since. A late case in Avhich this ruling is reaffirmed is In re Wisner., 203 U. S. 449, 455. That Congress may increase or diminish their powers, or abolish them, is beyond question. It has done so a num- ber of times. The judiciary act of 1875, 18 Statutes 470. extended the jurisdiction of the circuit courts of the United States materially ; the act of 1887, 24 Statutes 552, contracted it; the Judicial Code, 36 Statutes 1087, increased it in some respects and in others decreased it. By that act, CongTess abolished the circuit courts, and no one ever questioned the exercise of these powers by Congress. If Con- gress, by the act under consideration, has seen proper to authorize the contraction of the jurisdiction of the district courts, by limiting the courts in which actions may be maintained, it has only exerted the power which has been exercised ever since the enactment of the first judiciary act, in 1789, by the First Congress under the Constitution. Possessing this power. Congress may well determine in what courts actions may or may not be maintained. The Constitution confers on the Supreme Court appellate jurisdic- tion but " with such exceptions and under such regulations as Con- gress shall make." In ex parte McCardle, 74 U. S. 506, 514, it was held that Congress could deprive that court of appellate jurisdiction, and the repeal of an act of Congi-ess gi-anting appellate jurisdiction in certain causes deprived the court of the power to review judgments in such actions. This case has been followed as a correct interpreta- tion of the powers of Congi'ess in all cases involving this question, decided since. Mmfhy v. Otter, 186 U. S. 95, 109. In Dolley v. Penmylrania R. R. (Jo. (D. C), 250 Fed. 142, Judge Booth passed upon an act similar to this and sustained it. The contention that the statute is void because vesting administra- tive officers with legislative discretion or power is without merit. Selective Draft cases, 245 U. S. 366, 389. It is therefore clear that the act, if it authorizes these general or- ders, is Avithin the power of Congress under the Constitution. 37 DOES THE ACT OF CONGRESS GRANT THIS POWER TO THE PRESIDENT? Counsel for plaintiff contend that it does not, relying upon that part of section 10 of the act which reads: "Actions at law or suits in eciuity may be brought by or against such carriers and judgments rendered as now provided by law." In the opinion of the court, all this quotation means is that any person having a cause of action shall not by reason of this act, or any regulation made thereunder, be deprived of the right to maintain it in a proper court if, under the State, Federal, or conmion law, he is entitled to a legal remedy. It does not mean, as claimed, that having a cause of action against the carrier he lias the right to institute it in any forum in which he could have brought it before the passage of this act. To meet the exigencies existing during the war, Congress has. granted to the President the power to say that one shall not main- tain an action in .a forum where the natural effect of selecting such forum will be, in the language of General Order No. 18, "■ That men operating trains engaged in hauling war materials, troops, munitions, or supplies, are required to leave their trains and attend court as wit- nesses, and travel sometimes for hundreds of miles from their work, necessitating absence from their trains for days and sometimes for a week or more: whicli practice is highly prejudicial to the just in- terests of the Go^•ernment and seriously interferes with the physical operation of tlie railroads ; and the practice of suing in remote juris- dictions is not necessary for the protection of the rights or the just interests of plaintiff's." That the exercise of the right to maintain actions in a forum distant from the place where the witnesses reside, will seriously interfere with the successful prosecution of the war can not be open to doubt. How are the soldiers drafted under the selective-draft act to be transported from the interior to the seaports, if the operation of trains is to be interfered with in this manner? How are munitions, clothing, food, coal, and other supplies necessary to carry on the war to be transported expeditiously if the employees, without whom trains can not be operated, are to be compelled to leave their employment to attend as witnesses at places, hundreds of miles away from where their duties require them to be, whenever a perspn has, or imagines he has, a cause of action against the carrier, and for his convenience, or in some instances, perhaps to prevent a proper defense, institutes the action in a court fai- distant from the district Avhere the cause of action arose, and in a district other than that of the residence of the plaintiff' at the time of the accrual of the cause of action? The fact that not only the plaintiff* but his wit- nesses can more conveniently attend the court, if held at or near his home, or where the cause of action accrued, may well raise a doubt whether the selection of a foreign forum is always made in good faith. The amendment of General Order No. 18 by General Order No. 18-A was evidently intended to prevent a change of residence for the purpose of enabling a suit to be brought at a distance from where the plaintiff resided at the time of the accrual of the cause of action, as is so frequently done to enable one to maintain an action in a national court, instead of in the courts of the State of which the plaintiff and defendant were both citizens at the time of the accrual of the cause of action. But aside from this, statutes may not be construed by selecting some part thereof and disregarding other parts. For a proper con- struction of a statute the whole of it must be read together, to ascer- tain the legislative intent. In the language of Mr. Chief Justice ^Vhite in Van Dyhe v. Cordova Copper Co., 234, U. S. 188, 191, " We may not in order to give effect to those words virtually destroy the meaning of the entire context; that is, give them a significance which would be clearly repugnant to the statute, looked at as a whole and destructive of its obvious intent." The various provisions of an act should be read so that all may, if possible, have their due and con- joint effect without repugnancy or inconsistency. New Lapp Chimney Co. v. Ansonh- Brass Co., 91 U. S. 656, 662; Aaron v. United States, 204 Fed. 943, 123, C. C. A. 265. Applying this canon of construction to the act and giving effect to every part of it, as is our duty, it is apparent at once how untenable this contention is. That part of section 10 applicable to the matter in controversy reads: " Sec. 10. That carriers while under Federal control shall be subject to all laws and liabilities as common car- riers, Avhether arising under State or Federal, laws or at common law, except in so far as may he inconsistent ^vith the provisions of this act or any other act applicahJe to such Federal control or irith any order of the President.'''' Another provision of the act is section 9 : " And the President, in addition to the powers conferred by this act, shall haA'e and is hereby given such other and further powers necessary or appropriate to give effect to the poAvers herein and heretofore conferred." There is nothing in the general orders under consideration which deprives the plaintiff of her right to maintain an action against the defendant, but for reasons of public necessity, in a time of war, these regulations were made, because in the opinion of the President and Director General for good and sufficient reasons, they are necessary to prevent serious interference with the physical operation of rail- i-oads under the control of the (lovernment aud employed in the prosecution of the war. The act and regulations may well be sus- tained upon the ground that '•'• Salus popuU snprema lex est.'''' "The welfare of the people is the paramount law." The demurrer to the plea is o\ erruled. [Form A, October 22, 1918. — For companies without subsidiaries.] AGREEMENT BETWEEN THE DIRECTOR GENERAL OF RAILROADS AND THE COMPANY. Preamble axd Recitals. This Agreement, made this day of , 1918, be- tween Wfllicmi G. McAdoo^ Director General of Railroads, herein- after called the Director General, acting on behalf of the United States and the President, under the powers conferred by the procla- niutions of the President hereinafter referred to, and the Company, a corporation duly organized under the laws of the State (s) of , hereinafter called the Cqmpan}'^: Witnesseth that — {a) "Whereas hy a proclamation dated December 26, 1917, the President, acting under the powers conferred on him by the Consti- tution and laws of the United States, by the joint resolutions of the Senate and House of Representatives bearing date April 6 and De- cember 7, 1917, respectively, and particularly under the poM^ers con- ferred by section 1 of the act of Congrass approved August 29, 1916, entitled " An act making appropriations for the support of the Army for the fiscal year ending June 30, 1917, and for other purposes, " took possession and assumed control at 12 o'clock noon on December 28, 1917, of certain railroads and systems of transportation, including the railroad and transportation system of the Company and the ap- purtenances thereof, and directed that the possession, control, oper- ation, and utilization of the transportation systems thus taken should be exercised by and through William G. McAdoo, appointed Direc- tor General of Railroads ; and {h) "Whereas the Congress of the United States, by an act ap- proved March 21, 1918, hereinafter called the Federal control act, has authorized the President to enter into agreements with the com- panies owning the railroads and systems thus taken over for the maintenance and upkeep of the same during the period of Federal control, for the determination of the rights and obligations of the parties to the agreement arising from or out of Federal control, in- cluding the compensation to be received or guaranteed, and for other purposes, as in said act more fully set out, and authorize the Pres- (39) 40 ident to exercise any of the powers by said act or theretofore granted him with relation to Federal control through snc-h agencies as he might determine; and (c) Whereas by a proclamation dated March 29, 1918, the Presi- dent, acting under the Federal control act and all other powers him thereto enabling, authorized the Director General, either personally or through sncli divisions, agencies, or persons as he may appoint, and in his own name or in the name of such divisions, agencies, or persons, or in the name of the President, to agree witli the carriers, or any of them, or with any other person in interest, upon the amount of com- pensation to be paid pursuant to law, and to sign, seal, and deliver in his own name or in the name of the President or in the name of the United States such agreements as may be necessary and expedient with the several carriers or other persons in interest respecting com., pensation. or any other matter concerning which it may be necassary or expedient to deal, and to make any and all contracts, agreements, or obligations necessary or expedient and to issue any and all orders which may in any way be found necessary and expedient in connection with the Federal control of systems of transportation, railroads, and inland waterways as fully in all respects as the President is author- ized to do, and generally to do and perform all and singular the acts and things and to exercise all and singular the powers and duties which in and by the said act, or any other act in relation to the sub- ject thereof, the President is authorized to do and perform ; and (d) Whereas the Interstate Commerce Commission has certified to the President that the amount of the average annual railway oper- ating income of the Company, computed in the manner provided in section 1 of the Federal control act, is dollars and cents ($ ). subject to such changes and corrections as the Commission may hereafter determine and certify to be requisite in order that the accounts and reports of the Company used by the Commission as the basis of computing said average annual railway operating income may be brought into con- formity with the accounting rules or regulations of the Commission in force at the time of such accounting, or in order to correct compu- tations based on such accounts or reports. Now, Therefore, the parties hereto, each in consideration of the agreements of the other herein contained, do hereby covenant and agree to and with each other as follows: Section 1. — Privity. Ai/natATioNs. Dekinitioxs, Etc. Sec. 1. (a) This agreement shall l)e Ijinding upon the United States, the Director General and his successors, and upon the Com- pany, its successors, and assigns. 41 This agreement shall not be construed as creating any right, claim, privilege, or benefit against either party hereto in favor of any State or any subdivision thereof, or of any individual or corporation other than the parties hereto. (b) The provisions of this agreement may l)e akered, amended, or added to by and only by mutual consent signified by instruments in writing signed by the Director General and by some officer of the Company thereto duly authorized by the Board of Directors of the Company. (c) Wherever in this agreement the word " Commissioner'' is used it shall be understood as meaning the Interstate Commerce Com- mission, acting by divisions or otherwise as authorized by law; but either party shall have the right to have the decision of any division reviewed by the Commission sitting as a whole. (d) Wherever in this agreement the words "Federal control" are used to indicate a period of time, they shall be understood as mean- ing the period from 12 o'clock midnight of December 31, 1917, to and including the day and hour on which said control shall cease. (e) Wherever in this agreement the words " test period " are used, they shall be understood as meaning the period betw^een July 1, 1914, and June 30, 1917, both inclusive. (/) Wherever in this agreement the words " standard return " are used, they shall be understood as meaning the average annual rail- way operating income of the Company, computed in the manner pro- vided in section 1 of the Federal control act, and ascertained and certified by the Commission, (g) Wherever in this agreement the words "Director General" are used, they shall be understood as designating William G. McAdoo, or such other person as the President may from time to time appoint to exercise the powers conferred on him by law with relation to Federal control, or such agents or agencies as the Director General may from time to time appoint. for the purpose; and wher- ever by this agreement any notice is to be given by the Director General, the same may be given in his name by any subordinate there- to duly authorized. (h) Wherever the property of the company is referred to in this agreement it shall be understood as including all the property de- scribed in paragraph (a) of section 2 hereof, Avhether owned by or leased to the Company, and, where the context permits, all additions or betterments thereto or extensions thereof made during Federal control; and as to all such leased property the Company shall have the benefit of and be subject to all the obligations and provisions of this agreement and shall be subject to all duties imposed by law in respect of such leased property. 42 (i) The descriptive words at the heads of tlie several sections of this agreement and the table of contents are inserted for convenience merely, and are not to be used in the construction of the agreement. Section 2. — Property Taken Over. Sec. 2. The Companj^'s railroad and system of transportation of which the President has taken over possession, use, control, and operation shall be considered as including: (a) The following roads and properties: together with all branches and tracks, trackage, bridge, and terminal rights, and lines of railroad owned by or leased to and operated b,y the Company as a part of its system of transportation, and all other property of the Company with the appurtenances thereof, whether included in the foregoing list or not, the revenues of which were used, or which, if the property had been then owned by or leased to it and had then been revenue bearing, would have been used, in com- puting the Company's standard return. The Company reserves to itself the benefit of all leases (and of all rents and revenues accruing therefrom), of parts of its right of way, station grounds, and other property, the revenues from which under the accounting rules of the Commission in force during the test period were properly creditable to " miscellaneous rent income " or " miscellaneous income." The Company grants to the Director Gen- eral all its rights to terminate leases of any part of its right of way. yards, or station grounds, and to occupy and use the premises of any such lessee when, in his judgment, the same is required for operating purposes. The Company shall have for its own benefit the right to lease for industrial sites or other purposes such portion of its right of way, yards, or station grounds, or structures thereon, as are not required by the Director General for operating purposes, and to re- ceive and enjoy the rentals therefrom, subject to the right of the Di- rector General to cancel any such lease and to occupy the premises or structures whenever, in his judgment, the same are necessary for operating purposes. All expenses connected with any such property heretofore or hereafter leased or otherwise occuj^iod, as in this para- graph provided, including taxes thereon which during the test period were not charged to railway tax accruals, shall be paid by the Com- pany while receiving the revenues therefrom. (b) All materials and supplies on hand at midnight December 31. 1917 43 (c) All balances in the account or accounts representing the total of " Net balance receivable from agents and conductors " as of mid- night December 31, 1917; Section 3. — Acceptance. Sec. 3. {a) The Compan}- accepts all the terms and conditions of the Federal control act and any regulation or order made by or through the President under authority of said act or of that portion of the act approved August 29, 1916, referred to in paragraph (a) of the preamble to this agreement which authorizes the President in time of war to take possession, assume control, and utilize S3'stems of transportation; and the Company further and expressly accepts the covenants and obligations of the Director General in this agree- ment set out and the rights arising thereunder in full adjustment, settlement, satisfaction, and discharge of any and all claims and rights, at law or in equity, which it now has or hereafter can have, otherwise than under this agreement, against the United States, the President, the Director General, or anj'^ agent or agency thereof, for compensation under the Constitution and laws of the United States for the taking possession of its property, and for the use, control, and operation thereof during Federal control, and for any and all loss and damage to its business or traffic by reason of the diversion thereof or otherwise which has been or may be caused b}^ said taking or by said possession, use, control, and operation. No claim is made by the Company for compensation for the period betAveen noon of December 28 and midnight of December 31, 1917; and the revenues of said period shall belong to the Company, and the expenses thereof shall be paid by the Company, allocated in both cases as provided in paragraph (h) of section 4 hereof. (h) The Company, on its own initiatiA^e or upon the request of the Director General, shall take all appropriate and necessary corporate action to carry out the obligations assumed by it in this agreement or laW'fully imposed upon it b}^ or pursuant to the proclamation of December 26, 1917, or by the Federal control act. (c) The Federal control act being in section 16 thereof expressly declared to be emergency legislation enacted to meet conditions grow- ing out of war, nothing in this agi^eement shall be construed as ex- pressing or prejudicing the future policy of the Federal Government concerning the ownership, control, or regulation of the Company, or the method or basis of the capitalization thereof, and the recitals or provisions of this agreement shall not be used, as evidence or other- wise, by or against either party hereto in any pending or future pro- ceeding which involves the acquisition or valuation of the Company's 44 property or any part thereof ; but nothing in this paragraph shall be taken or construed as affecting the settlement and discharge contained in paragraph {a) of this section, nor as limiting or qualifying any of the provisions of said paragraph for the purposes thereof, nor as limiting the use of this agreement as evidence in any proceeding un- der tliis agreement or under the Federal control act. Section 4. — Operation and Accounting During Federal. Control. Sec. 4. (a) All amounts received by the Director General under paragraph (c) of section 2 hereof and all other amounts whether re- ceived from the Company in cash or collected or realized upon by him from current operating assets belonging to the Company or arising from railway operations prior to midnight of December 31, 1917, shall be credited by him to the Company; and the Director General shall, to the extent of the cash so received or realized, pay and charge to the Company all expenses arising out of railway opera- tions prior to January 1, 1918, including reparation claims, and, unless objected to by the Company, may pay and charge to the Com- pany any of such expenses, including reparation claims, in excess of the cash so received or realized. Balances of the above accounts shall be struck quarterly on the last days of March, June, Septem- ber, and December of each year, and the cash balance found on such adjustments to be due either party shall be then payable and, if not paid, shall bear interest at the rate of 6 per cent per annum, unless the parties shall agi'ee upon a different rate; except that the rate of interest on any portion of a balance found due to the Company which is derived from cash in bank to the credit of such Company on in- terest, shall be adjusted in each case independently of this contract as the parties may agree. (h) Eailway operating expenses, reparation and other claims, hire of equipment and joint facility rents shall be allocated with reference to the time when incurred as between the period prior and subsequent to midnight of December 31, 1917, and as between the period of Fed- eral control and the period subsequent thereto. Railway operating revenues shall be allocated a,s between the period prior and subse- quent to midnight of December 31, 1917, in accordance with the established accrual practices of the Company; except that where prior to midnight of December 31, 1917, the Company's part of a service on through business had been completed or carload lots on its own line had readied destination, the revenue of the Company for such service shall be allocated to it; but as to classes of traffic where in the opinion of the Director General such allocation will involve undue dehiy or undue absorption of accounting labor, such revenues shall be allocated in accordance with the established accrual 45 })nictices of the ComiDany. Like methods of accruing and allocating such revenues shall be made at the end of Federal control. (y the Director General for loans to the Company or to other companies of similar credit. (e) From its compensation so received or from other income, if adequate for the purpose, the Compam^ shall make all pa3^ments of interest, rents (other than the equipment rents, joint facility rents, and rents classified as operating expenses, mentioned in pai^agraph (/') of section 4 hereof), and other sums necessary to prevent a de- fault under any mortgage or lease of any of the property described in paragraph (a) of section 2 hereof; and if at any time during Fed- eral control the Company, by virtue of any change in the right of possession (subject to the rights of the United States) to any of said property or otherwise, shall no longer be entitled as between itself and any other person or corporation to receive the entire compensa- tion herein provided, such compensation shall be apportioned and paid, as betweeji the parties entitled thereto, as justice and right may require. Section 8. — Claims for Losses on Additions. Etc. Sec. 8. (a) Prompt notice in writing, except as provided in para- graph (d) of this section, shall be given the Company of the mak- ing or ordering of any additions, betterments, or road extensions, including terminals, motive power, cars, or other equipment to or for the property of the Company costing more than one thousand dollars, with an estimate of the cost thereof. Such notice shall be given before the beginning of the work or the acquisition of the property whenever in the judgment of the Director General it is practicable to do so. Within a reasonable time after the completion of the work or the acquisition of the property, a written statement of the final cost thereof shall be given the Company. There shall be furnished the Company, as soon as practicable after the end of each month, a written statement of all expenditures estimated to cost one thousand dollars or less chargeable to investment in road and equipment made during the month, with a brief description of the work done or of the property acquired; and such statement shall constitute all the notice of additions and betterments costing one thousand dollars or less required by (7j>) and (c) of this section. The notices provided in this paragraph may be given to the president of the Company unless the Company designates some other officer to receive the same, in which event the notice shall be given to such other officer. (h) Any claim of the Company for loss accruing to it by reason of expenditures for additions and betterments made to the property of the Company during Federal control in connection with or as a part of the Avork of maintaining, repairing, and renewing the Com- 56 pany's property and chargeable under the accounting rules of the Commission in force December 31, 1917, to invastment in road and equipment, except such expenditures as are incurred in connection Avith the replacement of buildings and structures in new locations, may be determined by agreement between the Director General and the Company, or, failing such agreement, as to the fact or amount of such loss, the questions at issue may, upon the application of either party at any time after the filing of the statement of claim herein- after referred to, be ascertained in the manner provided in section 3 of the Federal control act : Provided^ hoioever^ That no loss shall be claimed by the Company and no money shall be due to it in respect of such additions and betterments upon the ground that the actual cost thereof at the tiuie of construction was greater than under other market and commercial conditions; and for the purpose of deter- mining such controversy the amount paid for any addition or better- ment shall be deemed the fair and reasonable cost thereof and shall be taken as the basis for such determination; nor unless the Com- pany, within sixty days of notice to it that the work will be done, shall give the Director General notice of objection thereto and shall file with the Director General a statement of its claim within ninety days after notice of the completion of the work. {c) Any claim of the Company for loss accruing to it by reason of any additions and betterments which are not made in connection Avith or as a part of the work of maintaining, repairing, and renew- ing the Company's property, or accruing to it in connection with maintenance in the replacement of buildings and structures in new locations, or by reason of road extensions, terminals, motive power, cars, or other equipment made to or provided for the property of the Company during Federal control, may be determined by agreement between the Director General and the Company, or failing such agreement as to the fact or amount of such loss, may, by proceedings instituted not later than six months after the end of Federal control, be. ascertained in the manner provided in section 3 of the Federal control act: Provided^ hotvever. That no loss shall be claimed by the Company and no money shall be due to it in respect of such additions, betterments, road extensions, terminals, motive power, cars, or other equipment mentioned in this paragraph upon the ground that the actual cost thereof at the time of construction or acquisition was greater than under other market and commercial conditions; and for the purpose of determining such controversy the amount paid for any additions, betterments, road extensions, terminals, motive power, cars, or other equipment shall be deemed the fair and rea- sonable cost thereof and shall be taken as the basis for such determi- nation; nor unless within sixty days after notice to the Company of such construction or acquisition written notice is given to the Direc- 07 tor (ieneial by the Cortipany that it will claim a loss in respe<.t thereof. With and as a pait of such notice the Company shall state its objections to buch construction or acquisition as far as reasonably practicable at the time. Nothing in this agreement shall be con- strued as barring the United States from contending that no loss within the meaning of the Federal control act accrued to the Com- pany by reason of any additions, betterments, or road extensions made during Federal control by order or approval of the Director General, if it is made to appear that the Company itself but for Federal control should in the exercise of sound judgment have made such addition, betterment or road extension. (d) Where additions, betterments, or road extensions or terminals, motive power, cars, or other equipment have been made to or pro- vided for the property of the Company during Federal control but prior to the execution of this agreement, the Director General shall not be i-equired to give the notice thereof provided for in paragraph ( a) of this section and notice by the Company of any claim of loss in respect thereto may be given the Director General within ninety days after the execution hereof; and such claims shall thereafter be jjioceeded with in the manner provided in paragraph (&) or para- graph {c) of this section, as the case may be. {e) The Director General shall reimburse the Company for the amount of loss ascertained under this section with a proper adjust- ment of interest thereon. (/) The Director General shall not acquire any motive power, cars, or other equipment at the expense, or on the credit, of the Com- pany in excess of what in his judgment is necessary, in addition to its then existing equipment, to provide for the traffic requirements «>f its own system of transportation ; but this provision shall not jjrevent the Director General, after the acquisition of such equipment, from using the same, or any part thereof, on the line of any other transportation system operated by him. Section 0. — Final Accounting. Sec. 9 {a) At the end of Federal control all the property described in paragraph {a) of section 2 hereof shall be returned to the Com- pany, together with all repairs, renewals, additions, betterments, re- placements, and road extensions thereto Avhicli have been made dur- ing Federal control, except as any part thereof maj^ have been de- stroyed or retired and not replaced, in which case the provisions of section 5 hereof sliall govern and except that the Director General shall not be obliged to restore or replace propert}^ destroyed or dam- aged b}^ the acts of public enemies. ih) At the end of Federal control the Director General shall re- turn to the Company all uncollected accounts received by him from 58 the Company and also materials and supplies equal in quantity, qual- ity, and relative usefulness to that of the materials and supplies which he received and to the extent that the Director General does not re- turn such materials and supplies he shall account for the same at prices prevailing at the end of Federal control. To the extent that the Company receives materials and supplies in excess of those de- livered by it to the Director General it shall account for the same at the prices prevailing at the end of Federal control, and the balance shall be adjusted in cash. (c) The total amount of the account " Net balance receivable from agents and conductors " at the end of Federal control may be turned over by the Director General to the Company. He may also turn over all assets which have accrued out of operation; and the Com- pany shall, to the extent of the cash received or realized from such assets, pay and charge to the Director General all expenses arising out of railway operations during Federal control, including repara- tion and other claims, and may, unless objection is made by the Di- rector General, pay and charge to him any such expenses including reparation and other claims in excess of the cash so received or re- alized. On the first day of the third month following the termina- tion of Federal control an accounting between the parties shall be had, and so on the first of each third month thereafter. Any balance found due either party shall be payable as of the date on which the account is stated and shall bear interest until paid. {d) At the end of Federal control there shall be paid to the Com- pany any balance then remaining unpaid of the cash received from the Company at the 'beginning of or during Federal control, together with any unpaid interest which may have accrued upon the same. There shall also be paid to the Company any funds created under the provisions of this agreement, except to the extent that such funds may have been properly used under this agreement. (e) Wherever under any provision of this section there is to be an adjustment of interest, it shall be at the rate of five per cent per annum unless the parties shall in any case agree on a different rate. (/) After Federal control no claim by or against the Director Gen- eral shall be settled by the Company against the written objection of the Director General or the Attorney General of the United States. The conduct of all litigation before any court or commission arising out of such disputed claims or out of operations during P'ederal con- trol shall l)e in charge of the Company's legal force and the expense thereof shall be paid by the (Company; but the Director General or the Attorney General may, at the expense of the United States, em- ploy special counsel in connection wnth any such litigation. Execution. [Form B, October 22. 1918.— For Conipanios with Siisidinrios. ] AGREEMENT BETWEEN THE DIRECTOR GENERAL OF RAILROADS AND COMPANY AND OTHER CORPORATIONS. Preamble and Recitals. This agreement, made this day of , 1918, between WilUani G, McAdoo, Director General of Raih'oads, herein- after called the Director General, acting- on behalf of the United States and the President, mider the powers conferred by the procla- mations of the President hereinafter referred to, party of the first part, and the parties of the second part : Witnesseth that — (a) Whereas by a proclamation dated December 26, 1917, the President, acting under the powers conferred on him by the Consti- tution and laws of the United States, by the joint resolutions of the Senate and House of Representatives bearing date April 6 and De- cember 7, 1917, respectively, and particularly under the powers con- ferred by section 1 of the act of Congress approved August 29, 191G, entitled " An act making appropriations for the support of the Army for the fiscal year ending June 30, 1917, and for other purposes," took possession and assumed control at 12 o'clock noon on December 28, 1917, of certain railroads and systems of transportation, includ- ing the railroads and transportation systems of the Companies and the appurtenances thereof, and directed that the possession, control, operation, and utilization of the transportation systems thus taken should be exercised by and through William G. McAdoo, appointed Director General of Railroads; and (h) Whereas the Congress of the United States, by an act ap- proved March 21, 1918, hereinafter called the Federal control act, has authorized the President to enter into agreements with the com- panies owning railroads and systems thus taken over for the main- tenance and upkeep of the same during the period of Federal control, for the determination of the rights and obligations of the parties to the agreement arising from or out of Federal control including the compensation to be received or guaranteed, and for other purposes, (59) 60 as in said act more fully set out. and autliorized the President to exer- cise any of the powers by said act or theretofore gi-anted hini with re- lation to Federal control through such agencies as he might de- termine; and (c) Whereas by a proclamation dated March 29, 1918, the Presi- dent, acting under the Federal control act and all other powers him thereto enabling, authorized the Director General either personally or through such divisions, agencies, or pei^ons as he may appoint, and in his own name or in the name of such divisions, agencies, or per- sons, or in the name of the President, to agree with the carriers, or any of them, or with any other person in interest, upon the amount of compensation to be paid pursuant to law, and to sign, seal, and deliver in his own name or in the name of the President or in the name of the United States such agreements as may be necessary and expedient with the several carriers or other persons in interest respecting compensation, or any other matter concerning which it may be necessary or expedient to deal, and to make any and all con- tracts, agreements, or obligations necessary or expedient and to issue any and all orders w-hich may in any way be found necessary and expedient in connection with the Federal control of systems of trans- portation, railroads, and inland waterways as fully in all respects as the President is authorized to do, and generally to do and per- form all and singular the acts and things and to exercise all and singular the powers and duties which in and by the said act, or any other act in relation to the subject thereof, the President is author- ized to do and perform; and (d) Whereas the Interstate Commerce Commission has certified to the President the amount of the average annual railway operating incomes of the said Companies, computed in the manner provided in section 1 of the Federal control act, and the aggregate of which amounts is dollars, and cents ($ ), subject to such changes and corrections as the Commission may hereafter determine and certify to be requisite in order that the accounts and reports of the Companies used by the Commission as the basis of computing said average annual railway operating incomes may be brought into conformity with the accounting rules or regulations of the Commis- sion in force at the time of such accounting, or in order to correct computations based on such accounts or reports. Now, Therefore, the parties hereto, of the first and second parts, respectively, each in consideration of the agi-eements of the other herein contained, do lioreby covenant and agree to and with each other as follow<: Section 1. — Privity. Altkkations, Definitions, Etc. Sec. 1. {a) This agreement shall be binding upon the United States, the Director General and his successors, and upon the Com- panies, and their respective successors and assigns. Wherever in this agreement the word " Company " is used, it shall be understood as meaning the Company : the words " Affiliated Companies " shall be understood as meaning the other corporations, parties to this agreement; and the word "Com- panies"' shall be understood as meaning the corporations, parties to this agreement. The rights and obligations of the Companies in this agreement con- tained are several, not joint. The Company owns all the stock, ex- cept directors' qualifying shares, of all the Affiliated Companies. This agreement shall not be construed as creating any right, claim, privilege, or benefit against any party hereto in favor of any state or any subdivision thereof, or of any individual or corporation other than the parties hereto. (b) The provisions of this agreement may be altered, amended, or added to by and only by mutual consent signified by instruments in writing signed by the Director General and by some officer of the Company thereto duly authorized by the Board of Directors of the Company. (c) Wherever in this agreement the word "Commission" is used it shall be understood as meaning the Interstate Commerce Commis- sion, acting by divisions or otherwise as authorized by law ; but any party shall have the right to have the decision of any division re- viewed by the Commission sitting as a whole. (d) Wlierever in this agi'eement the words "Federal control" are used to indicate a period of time, they shall be understood as mean- ing the period from 12 o'clock midnight of December 31, 1917, to and including the day and hour on which said control shall cease. (e) Wherever in this agreement the words " test period " are used, they shall be understood as meaning the period between July 1, 1914, and June 30. 1917, both inclusive. (/) Wherever in this agreement the words "standard return" are used, they shall be understood as meaning average annual railway operating income, computed in the manner provided in section 1 of the Federal control act, and ascertained and certified by the Commis- sion. (r/) Wherever in this agi^eement the words " Director General " are used, they shall be understood as designating William G. McAdoo, or such other person as the President may from time to time appoint to exercise the powers conferred on him by law with relation to Federal 62 control, or such agents or agencies as the Director General may from time to time appoint for the purpose: and wherever byj;his agreement an}'^ notice is to be given by the Director General, the same may ]je given in his name by any subordinate thereto duly authorized. {h) Wherever the property of any of the Companies is referred to in this agreement it shall be understood as including all the property described in paragraph {a) of section 2 hereof, whether owned by or leased to the Companies, and, where the context permits, all additions or betterments thereto or extensions thereof made during Federal control ; and as to all such leased propert}^ the Companies shall have the benefit of and be subject to all the obligations and provisions of this agreement and shall be subject to all duties imposed by law in respect of such leased property. (^) The descriptive words at the heads of the several sections of this agreement and the table of contents are inserted for convenience merely, and are not to be used in the construction of the agreement. Section 2. — Property Takex 0^^:R. Sec. 2. The railroads and systems of transportation of the Com- pany and of its said Affiliated Companies of which the President has taken over possession, use, control, and operation shall be considered as including: {a) The following roads and properties: together with all branches and tracks, trackage, bridge, and terminal rights, and lines of railroad owned by or leased to and operated by any of the Companies as a part of their systems of transportation, and all other property of the Companies, with the appurtenances thereof, whether included in the foregoing list or not, the revenues of which were used, or which, if the property had been then owned by or leased to the Companies and had then been revenue bearing, would have been used, in computing the standard return of any of the Companies. Each of the Companies reserves to itself the benefit of all leases (and of all rents and revenues accruing therefrom) of parts of its right of Avay. station grounds, and other property, the revenues from which under the accounting rules of the Commission in force during the test period Avere properly creditable to " miscellaneous rent income " or "miscellaneous income." Each of the Companies grants to the Director General all its rights to terminate leases of any part of its right of way, yards, or station grounds, and to occupy and use the ])remises of any such lessee wlien, in his judgment, the same is re- quired for operating purposes. Each of the Companies shall have 63 for its own benefit the right to lease for industrial sites or other pur- poses such portion of its right of way, yards, or station grounds, or structures thereon as are not required by the Director General for operating purposes, and to receive and enjoy the rentals therefrom, subject to the right of the Director General to cancel any such lease and to occupy the premises or structures whenever, in his judgment, the same are necessary for operating purposes. All expenses con- nected with any such property heretofore or hereafter leased or oth- erwise occupied, as in this paragraph provided, including taxes thereon which during the test period were not charged to railway tax accruals, shall be paid by the Companies while receiving the revenues therefrom. (h) All materials and supplies on hand at midnight December 31, 1917. (c) All balances in the account or accounts representing the total of " Net balance receivable from agents and conductors " as of mid- night December 31, 1917. Section 3. — Acceptance. Sec. 3. (a) The Companies accept all the terms and conditions of the Federal control act and any regulation or order made by or through the President under authority of said act or of that portion of the act approved August 29, 1916, referred to in paragraph (a) of the preamble to this agreement which autliorizes the President in time of war to take possession, assume control, and utilize systems of transportation; and they further and expressly accept the cove- nants and obligations of the Director General in this agreement set out and the rights arising thereunder in full adjustment, settlement, satisfaction, and discharge of any and all claims and rights, at law or in equity, which they or any of them now have or hereafter can have, otherwise than under this agreement, against the United States, the President, the Director General, or any agent or agency thereof, for compensation under the Constitution and laws of the United States for the taking possession of their property, and for the use, control, and operation thereof during Federal control, and for any and all loss and damage to their business or traffic by reason of the diversion thereof or otherwise which has been or may be caused by said taking or by said possession, use, control, and operation. No claim is made by the Companies for compensation for the period between noon of December 28 and midnight of December 31, 1917 ; and the revenues of said period shall belong to the Companies, and the expenses thereof shall be paid by them, allocated in both cases as provided in paragraph (b) of section 4 hereof. (b) The Companies, on their own initiative or npon the request of the Director General, shall take all appropriate and necessary cor- 64 porate action to carry out the obligations assumed by them in this agreement or lawfully imposed upon them by or pursuant to the proclamation of December 26, 1917, or by the Federal control act. (c) The Federal control act being in section 16 thereof expressly declared to be emergency legislation enacted to meet conditions grow- ing out of war, nothing in this agreement shall be construed as ex- pressing or prejudicing the future policy of the Federal Government concerning the ownership, control, or regulation of the Companies, or the method or basis of the capitalization thereof, and the recitals or provisions of this agreement shall not be used, as evidence or otherwise, by or against any party hereto in any pending or future proceeding which involves the acquisition or valuation of the prop- erty of any of the Companies or any part thereof; but nothing in this paragraph shall be taken or construed as affecting the settlement and discharge contained in paragraph (a) of this section, nor as limiting or qualifying any of the provisions of said paragraph for the purposes thereof, nor as limiting the use of this agreement as evidence in any proceeding under this agi'eement or under the Federal control act. Section 4. — Operation and Accounting During Federal Control. Sec. 4. {a) All amounts received by the Director General under paragraph [c) of section 2 hereof and all other amounts whether received from the Companies in cash or collected or realized upon by him from current operating assets belonging to the Companies or arising from railway operations prior to midnight of December 31, 1917, shall be credited by him to the Companies; and tlie Director General shall, to the extent of the cash so received or realized, pay and charge to the Companies all expenses arising out of railway operations prior to January 1, 1918, including reparation claims, and, unless objectetl to by the Company, may pay and charge to the Com- panies any of such expenses, including reparation claims, in excess of the cash so received or realized. Balances of the above accounts shall be struck quarterly on the last days of March, June, September, and December of each year, and the cash balance found on such ad- justments to be due either party shall be then payable and, if not paid, shall bear interest at the rate of 6 per cent per annum, unless the parties shall agree upon a different rate; except that the rate of interest on any portion of a balance found due to the Companies Avhich is derived from cash in bank to the credit of the Companies on interest, shall be adjusted in each case independently of this contract as the parties may agree. {h) Railway operating expenses, reparation and other claims, hire of equipment and joint facility rents shall be allocated with 65 reference to the time Tihen inciirred as between the period prior and subsequent to midnight of December 31, 1917, and as between the period of Federal control and the period subsequent thereto. Kail- way operating- revenues shall be allocated as between the period prior ami subsequent to midnight of December 31. 1917, in accordance with the established accrual practices of the Companies ; except that whera prior to midnight of December 31. 1917, the Companies' part of a service on through business had been completed on carload lots on their own lines had reached destination, the revenue of the Com- panies for such service shall be allocated to them ; but as to classes of traffic where in the opinion of the Director General such allocation will involve undue delay or undue absorption of accounting labor, such revenues shall be allocated in accordance with the established accrual practices of the Companies. Like methods of accruing and allocating such revenues shall be made at the end of Federal control, (e) All expenditures made by the Director General during Federal control for additions and betterments, exclusiA'e of equipment, or for extensions begun prior to January 1, 1918, shall be charged to the Companies, and if the completion of any such addition, betterment, or extension is approved or ordered by the Director General, the Company shall be entitled under the provisions of paragraph (d) of section 7 hereof to interest on the cost thereof from the comple- tion of the Avork: but no interest (except to the extent tliat the same may be allowed and included in the com.pensation provided for in paragraph (a) of section 7 hereof) shall be due the Company upon any such expenditures for work done prior to January 1, 1918. Payments for all equipment ordered or under construction by any of the Companies prior to January 1, 1918, but delivered on or after that date, shall also be considered as expenditures made by order or approval of the Director General under paragraph (d) of section 7 hereof. Interest during construction payable under this para- graph, and also interest during construction on the cost of any addi- tions, betterments, and road extensions made by the Companies or at their expense to the Companies' property during Federal control, shall be included in the cost of the work. (d) Cash receipts or disbursements and other items arising out of transactions which do not enter into or form a part of those used in determining the Companies' standard return shall not be re- ceived or paid by the Director General unless such transactions are negotiated or conducted by his order for account of the Companies and with the consent of the Company. When moneys are so received or paid by the Director General in connection with such corporate transactions they shall be credited or charged to the Companies. There shall be an accounting of the amounts due by or to any of the 105S89°~19 66 parties under this paragraph at the end of each quarter year of Federal control, and the amount so found due shall be then payable and if not paid shall bear interest as provided in paragraph (a) of this section. (e) All sums paid by the Director General to maintain pension funds or pension obligations or practices, and all contributions to Young Men's Christian Associations of employees, employees' sav-, ings fimds, relief funds or associations, reading rooms, or health, accident, or death benefits for employees, shall be treated as a part of railway operating expenses during Federal control. (/) All salaries and expenditures incurred by the Companies dur- ing Federal control for purposes which relate to the existence and maintenance of the corporations, or to the properties of the Com- panies not taken over by the President, or to negotiations, contracts, valuations, or any business controversy with the Government or any branch thereof, and which are not specially authorized by the Director General, shall be borne by the Companies; except that the expenses of valuation now being made by the Commission to the extent that they are, in the opinion of the Director General, neces- sary to comply with the valuation orders and other requirements of the Commission and to the cooperation of the Companies in the making of such valuation, shall be paid by the Director General as a part of railway operating expenses. If the Company is dissatisfied with the ruling of the Director General it may appeal to the Com- mission, whose decision shall be final. (g) The Director General shall furnish for additions, betterments and road extensions to the Companies' property approved or ordered by him any of the materials and supplies taken over under parapraph (h) of section 2 hereof, or purchased by him and held for use in comiection with the Companies' property, in so far as, in his judg- ment, he can do so with due regard to his own requirements. Ma- terials and supplies so furnished shall be charged to the Com- panies at cost. (A) The Director General shall at his option be substituted for the period of Federal control in the place of the Companies in respect of the benefits and obligations of contracts relating to operation in force January 1, 1918 (including contracts made by subsidiaries for the use and benefit of the Companies and the right to abrogate or change and make new contracts with express companies for the period of Federal control), except as to contracts between the Com- panies and subsidiary companies which shall be considered and treated as arrangements or practices; and the Director General shall in like manner at his option be substituted for such period in re- spect of the benefits and obligations of arri'igements and practices in force during the test period in regard to fuel, materials, and supplies €7 for the operation of the property described in paragraph (a) of section 2 hereof and of any additions, betterments, and road exten- sions thereto, obtained fi^om any mine, oil field, or other source of supply owned or controlled by the companies, it being understood that under such arrangements or practices, if availed* of by the Director General, he shall, to the extent necessary to offset any in- crease in the standard return growing out of the furnishing by the Companies or their subsidiaries, during the test period, of fuel, ma- terials, and supplies under an arrangement or practice at less than the then cost or the then market value thereof for railroad purposes, be charged for such fuel, materials, and supplies a price expressed in dollars or cents per unit below or above the then cost or the then market value thereof for railroad purposes (as the practice of the Companies may have been) in the same amount that the prices charged the Companies during the test period were below or above the then cost or the then market value thereof for railroad purposes ; and at the request of the Director General or the Companies the prices for fuel or materials supplied between December 31, 1917, and the execution of tliis contract shall be adjusted on the foregoing basis : Provided, liowever^ That a source of supply which the Com- panies had acquired to safeguard their own operations shall not be depleted or reduced for use on other transportation systems, except in cases of emergency to be determined by the Director General, in which event the quantity so used on other transportation systems shall be accounted for to the Companies at the fair value thereof: AtuI provided further, That materials and supplies secured under contracts which the Companies had made for their own operations shall, so far as practicable, be used on the Companies' property, and that, if used on any other transportation system, materials and sup- plies of like character shall be furnished by the Director General for use in making such additions, betterments, and road extensions as shall be chargeable to the Companies, and shall be charged at cost under such contracts. (^) The Director General shall pay, or save the Companies harm- less from, all expenses incident to or growing out of the possession, operation, and use of the property taken over during Federal control, except the expenses w^hich under this agTeement are to be borne by the Companies. He shall also pay or save the Companies harmless from all rents called in the monthly reports to the Commission equipment rents or joint-facility rents, and all judgments or decrees that may be recovered or issued against, and all fines and penalties that may be imposed upon, the Companies by reason of any cause of action arising out of Federal control, or of anything done or omitted in the possession, operation, use, or control of the Companies' prop- erty during Federal control, except judgments or decrees founded on . 68 obligations of the Companies to the Director General or the United States. (j) Except as otherwise provided in this agreement the Director General shall save the Companies harndess from any and all liability, loss, or expense resulting from or incident to any claim made against the Companies gi'owing out of anything done or omitted during Fed- eral control in connection with, or incident to, operation or existing contracts relating to operation ; and shall do and perform, so far as is requisite under Federal control for the protection of the Com- panies, all and singular the things, of which he may have notice, necessary and appropriate to prevent, because of Federal control or of anything done or omitted thereunder, the forfeiture or loss by the Companies of any of their property rights, ordinance rights, or franchises, or of their trackage, lease, terminal, or other contracts involving a facility of operation ; but nothing herein contained shall be construed to require the Director General to make any capital expenditure necessary to preserve a franchise or ordinance right not heretofore availed of by the Companies. The Director General shall also save the Companies harmless from any and all claims for breach of covenant heretofore entered into by the Companies or by any predecessor in title or interest in any mortgage or other instrument in respect to insurance against losses by fire. Nothing in this or in the preceding paragraph shall be construed to be an assumption by the Director General of, or to make him liable on, any obligation of the Companies to pay a debt secured by a mortgage or any rent under a lease, except rents Avhich during the test period were called in the monthly reports to the Commission equipment rents and joint-facility rents and rents Avhich under the accomiting rules of the Commission in force during the test period were classified as operating expenses. The Companies shall, during Federal control, pay the rents of any property, held by tliem under lease or contract, described in i)ara- graph {//) of section 2 hereof, except the rents Avhicli (huing the test period were, under the rules of the Connnission, classified as equipment rents or joint facility rents, and rents which were classi- fied as operating expenses; which excepted rents sluill i)e jiaid by the Director General. If the lease of, or right to use. any ])roi)erty described in paragraph ((/) of said section '2 expires during Federal control, the companies shall, if possible, and if requested by the Director General, renew the same: the rental, liowever. of property in the excejited classes above mentioned shall be paid by the Director (ienei-al. Tlie CoHii);iiiies shall pay the same amount of rent as was l^ayable at the l^eginning of P>deral contrcd for other proiun-ty, the lease of or right to use Avhich is renewed at the reeen or shall l)e paid by the Companies, they shall be duly reimbursed therefor. (e) The Director General shall either pay out of revenues derived from railway operation during the period of Federal control or shall save the Companies harmless from all taxes lawfully assessed under Federal or any other governmental authority for any part of said period on the property under such control, or on the right to operate as a carrier, or on the revenues derived from operation, and all other taxes which under the accounting rules of the Commission in force December 31. 1917, are properly chargeable to " railway tax accruals," except the taxes and assessments for which provision is made in para- graph (a) of this section. The Director General shall pay or save the Companies harmless from the expense of all suits respecting the classes of taxes payable by him under this agreement. (d) If any such tax is for a period which began before January 1, 1918, or continues beyond the period of Federal control, such portion of such tax as may be apportionable to the period of Federal control shall be paid by the Director General, and the remainder shall be paid by the Companies. (e) Whenever a period for which a tax is assessed can not be defi- nitely determined, so much of such tax as is payable in any calendar year shall be treated as assessed for such year. SeCTIOX 7. COMPEXSATIOX. Sec. 7. (a) The annual compensation guaranteed to the Companies under section 1 of the Federal control act shall be the sum of ^^ dollars and cents ($ ) during each year and pro rata for each fractional part of a j^ear of Federal control, subject, however, to any increase or decrease in the standard return hereafter made by the Commission as provided in paragraph (d) of the pre- amble of this agTeement. Compensation paid by the Director General under this agree- ment, including that provided for in paragraph (d) of this section, or arising from any other source, shall be paid to the Company ; and the Company, after retaining such part thereof as it may be entitled to retain, shall distribute the remainder to the par- ties entitled thereto. (h) The said compensation shall be paid to the Company quar- terly in equal installments on the last days of March, June. September, and December of each year for the quarter ending therewith, except that the first three installments shall be due as of March 31, 1918, June 30, 1918, and September 30. 1918, respectively, but shall be paid upon the execution of this agreement; but from each installment there may be deducted any amount then due by the Companies under paragraphs (a) and (d) of section 4 hereof, under paragraph (b) of 74 section 5 hereof, and under paragraph (h) of section 6 hereof, and all amounts required to reimburse the United States for the cost of additions and betterments made to the property of the Companies not justly chargeable to the United States, unless such matters are financed or otherwise taken care of by the Companies to the satisfac- tion of the Director General, and the Director General may appor- tion any such amounts to two or more subsequent installments: Provided, however, That said power to deduct amounts due or accruing under paragraph (&) of section 5 hereof and the cost of ad- ditions and betterments not justly chargeable to the United States shall not be so exercised as to prevent the Companies from paying out the sums reasonably required to support their corporate organi- zations, to keep up sinking funds for the Companies' debts required by contracts in force December 31, 1917, to pay their taxes, to pay rents and other amounts (not chargeable to capital account) prop- erly payable by the Companies for leased or operated roads and properties, to pay interest which has heretofore been regularly paid by the Companies, and interest on loans issued during Federal control and approved by the Director General, nor shall such de- duction be made in respect of additions and betterments which are for war purposes and not for the normal development of the Com- panies, nor in respect of road extensions, nor in respect of amounts due under paragraphs (a) and {d) of section 4 hereof, in cases where the current assets, including materials and supplies, of the Com- panies taken over by the Director General under the provisions of this agreement clearly exceed the current liabilities of the Companies paid or assumed by the Director General under said section. In the event of a difference as to the fact whether additions and better- ments are for war purposes and not for the normal development of the Companies, or as to whether an addition is a road extension, the question may, on application of the Director General or the Com- pany, be referred to and determined by the Commission. The poAver provided in this paragraph to deduct the amount due by the Companies for the cost of additions and betterments not justly chargeable to the United States is fuiiher declared to be an emer- gency power, to be used by the Director General only when he finds that no otlier reasonable means is provided by the Companies to re- imburse the United States, and, as contemplated by the President's proclamation and by the Federal control act, it will be the policy of the Director General to so use such power of deduction as not to inter- rupt unnecessarily the regular payment of dividends as made by the Companies during the test period. Overdue installments of compensation, or balances thereof, pro- vided for in this section shall bear interest from maturity at the rate 75 of five per cent per annum, except that if the Director General sliall, prior to the execution of this contract, have loaned the Companies any money, the installments of compensation overdue at the date of the execution hereof shall bear interest from maturit}' at the same rate as that charged to the Companies on such loans. (c) During Federal control the Companies shall not, without the prior approval of the Director General, issue any bonds, notes, equip- ment trust certificates, stock, or other securities, or enter into any con- tracts (except contracts in respect of corporate affairs and property not taken under Federal control), or agree to pay interest on their debts at a higher rate, or for rent of leased roads and properties a larger amount, than the rates and amounts payable as of, or required by contracts in force on, December 31, 1917. The Companies may, however, procure the authentication and delivery to them under any mortgage or trust deed or agreement in force December 31, 1917, of 'bonds or notes issuable thereunder in respect of additions, better- ments, extensions, and equipment, or for refunding purposes. (d) Upon the cost of additions and betterments, less retirements in connection therewith, and upon the cost of road extensions, made to the property of the Companies during Federal control, the Di- rector General shall, from the completion of the work, pay the Com- pany a reasonable rate of interest, to be fixed by him on each occa- sion. In fixing such rate or rates he may take into account not merely the value of money but all pertinent facts and circumstances, whether the money used was derived from loans or otherwise, provided that to the extent that the money is advanced by the Director General or is obtained by the Companies from loans or from the proceeds of securities the rate or rates shall be the same as that charged by the Director General for loans to the Companies or to other companies of similar credit. (e) From the compensation so received or from other income, if adequate for the purpose, the Companies shall make all payments of interest, rents (other than the equipment rents, joint facility rents, and rents classified as operating expenses mentioned in paragraph (j) of section 4 hereof), and other sums necessary to prevent a de- fault under any mortgage or lease of any of the property described in paragraph (a) of section 2 hereof; and if at any time during Fed- eral control the Companies, by virtue of any change in the right of possession (subject to the rights of the United States) to any of said property or otherwise, shall no longer be entitled as between them- selves and any other person or corporation, not a part}' to this agree- ment, to receive the entire compensation herein provided, such com- pensation shall be apportioned and paid as betAveen those entitled thereto, as justice and right may require. 76 Section 8. — Claims for Losses on Additions, Etc. Sec. 8. .(«) Prompt notice in writing, except as provided in para- graph (d) of this section, shall be given the Companies of the mak- ing or ordering of &nY additions, betterments, or road extensions, in- cluding terminals, motive power, cars, or other equipment to or for the property of the Companies costing more than one thousand dol- lars, with an estimate of the cost thereof. Such notice shall be given before the beginning of the Avork or the acquisition of the property whenever in the judgment of the Director General it is practicable to do so. Within a reasonable time after the completion of the work or the acquisition of the property, a written statement of the final cost thereof shall be given the Companies. There shall be furnished the Companies, as soon as practicable after the end of each month, a written statement of all expenditures estimated to cost one thousand dollars or less chargeable to investment in road and equipment made during the month, with a brief description of the work done or of the property acquired; and such statement shall constitute all the notice of additions and betterments costing one thousand dollars or less required by (h) and {c) of this section. The notices provided in this paragraph may be given to the president of the Company unless the Company designates some other officer to receive the same, in which event the notice shall be given to such other officer. (b) Any claim of the Companies for loss accruing to them by reason of expenditures for additions and betterments made to their property during Federal control in connection with or as a part of the work of maintaining, repairing, and renewing the Companies' property and chargeable under the accounting rules of the Commis- sion in force December 31. 1917. to investment in road and equipment, except such expenditures as are incurred in connection with the re- placement of buildings and structures in new locations, may be de- termined by agreement between the Director General and the Com- panies, or, failing such agreement as to the fact or amount of such loss, the que^-tions at issue may, upon the application of the Director General or the Companies at any time after the filing of the statement of claim hereinafter referred to, be ascertained in the manner pro- vided in. section 3 of the Federal control act: Proindcd, hoirever. That no loss shall be claimed by the Companies and no money shall be due them in respect of such additions and betterments upon the ground that the actual cost thereof at the time of construction was greater than under other market and commercial conditions; and for the purpose of determining such controversy the amount paid for any addition or betterment shall be deemed the fair and reason- able cost thereof and shall Ije taken as the basis for such determina- 77 tion ; iior unless the Companies, within sixty days of notice to them that the worli: will be done, shall give the Director General notice of objection thereto and shall file with the Director General a statement of claim within ninety days after notice of the completion of the work. (c) Any claim of the Companies for loss accruing to them by- reason of any additions and betterments which are not made in con- nection with or as a part of the work of maintaining, repairing, and reneAving the Companies' property, or accruing to them in connec- tion with maintenance in the replacement of buildings and structures in new locations, or by reason of road extensions, terminals, motive power, cars, or other equipment made to or provided for the prop- erty of the Companies during Federal control, may be determined by agreement between the Director General and the Companies, or failing such agreement as to the fact or amount of such loss, may, by proceedings instituted not later than six months after the end ol Fecleral control, be ascertained in the manner provided in section 3 of the Federal control act: Provided, however, That no loss shall be claimed by the Companies and no money shall be due to them in respect of such additions, betterments, road extensions, tenninals, motive power, cars, or other equipment mentioned in this para- graph upon the ground that the actual cost thereof at the time of construction or acquisition was greater than under other market and conuuercial conditions; and for the purpose of determining such controversy the amount paid for any additions, betterments, road extensions, terminals, motive power, cars, or other equipment shall be deemed the fair and reasonable cost thereof and shall be taken as the basis for such determina- tion; nor unless within sixty days after notice to the Com- pany of such construction or acquisition written notice is given to the Director General by the Company that a loss will be claimed in respect thereof. With and as a part of such notice the Company shall state the objections to such construction or acquisiticm as far as reasonably practicable at the time. Nothing in this agreement shall be construed as barring the United States from contending that no loss within the meaning of the Federal control act accrued to the Companies by reason of any additions, betterments, or road extensions made during Federal control by order or approval of the Director General, if it is made to appear that the Companies tliemselves but for Federal control should in the exercise of sound judgment have made such addition, betterment, or road extension. {d) Where additions, betterments, or road extensions or terminals, u)otive poAver, cars, or other equipment have been made to or pro- vided for the property of the Companies during Federal control but 78 prior to tlie execution of this agreement, the Director General shall not be required to give the notice thereof provided for in paragraph [a) of this section and notice by the Company of any claim of loss in respect thereto may be given the Director General within ninety days after the execution hereof ; and such claims shall thereafter be proceeded with in the manner provided in paragi^aph (h) or para- graph (c) of this section, as the case may be. (e) The Director General shall reimburse the Companies for the amount of loss ascertained under this section with a proper adjust- ment of interest thereon. (/) The Director General shall not acquire any motive power, cars, or other equipment at the expense, or on the credit, of the Com- panies in excess of what in his judgment is necessary, in addition to their then existing equipment, to provide for the traffic requirements of their own systems of transportation; but this provision shall not prevent the Director General, after the acquisition of such equip- ment, from using the same, or any part thereof, on the line of any other transportation system operated by him. Section 9. — Final Accounthstg. Sec. 9. (a) At the end of Federal control all the property de- scribed in paragraph (a) of section 2 hereof shall be returned to the Companies, together with all repairs, renewals, additions, better- ments, replacements, and road extensions thereto which have been made during Federal control, except as any part thereof may have been destroyed or retired and not replaced, in which case the pro- visions of section 5 hereof shall govern and except that the Director General shall not be obliged to restore or replace property destroyed or damaged by the acts of public enemies. (5) At the end of Federal control the Director General shall re- turn to the Companies all uncollected accounts received by him from them and also materials and supplies equal in quantity, quality, and relative usefulness to that of the materials and supplies which he received, and to the extent that the Director General does not return such materials and supplies he shall account for the same at prices prevailing at the end of Federal control. To the extent that the Companies receive materials and supplies in excess of those delivered by them to the Director General they shall account for the same at the prices prevailing at the end of Federal control and the balance shall be adjusted in cash. (c) The total amount of the account " Net balance receivable from agents and conductors " at the end of Federal control may be turned over by the Director General to the Company. He may also turn over all assets which have accrued out of operation; and the Company 79 shall, to the extent of the cash received or realized from such assets, pay and charge to the Director General all expenses arising out of railway operations during Federal control, including reparation and other claims, and may, unless objection is made by the Director General, pay and charge to him any such expenses, including repara- tion and other claims, in excess of the cash so received or realized. On the first day of the third month following the termination of Federal control an accounting between the parties shall be had, and so on the fii-st of each third month thereafter. Any balance found due either party shall be payable as of the date on which the account is stated and shall bear interest until paid. {(l) At the end of Federal control there shall be paid to the Com- panies any balance then remaining mipaid of the cash received from them at the beginning of or during Federal control, together wdth any unpaid interest which may have accrued upon the same. There shall also be paid to the Companies any funds created under the pro- visions of this agreement except to the extent that such funds may have been properly used under this agreement. {e) Wherever under any provision of this section there is to be an adjustment of interest, it shall be at the rate of five per cent per an- num, unless the parties shall in any case agree on a different rate. (/) After Federal control no claim by or against the Director General shall be settled by the Companies against the written objec- tion of the Director General or the Attorney General of the United States. The conduct of all litigation before any court or commis- sion arising out of such disputed claims or out of operations during Federal control shall be in charge of the Companies' legal force and the expense thereof shall be paid by the Companies ; but the Director General or the Attorney General may, at the expense of the United States, employ special counsel in connecticm with any such litigation. Execution. [Short Lino Form.] AGREEMENT BETWEEN THE DIRECTOR GENERAL OF RAILROADS AND THE COMPANY. Agreement. This AgTccment made this day of , 1918, between William G. McAdoo, Director General of Kailroads (here- inafter called the Director General), acting on behalf of the United States and the President, under the powers conferred on him by ihe proclamation of the President, hereinafter referred to, and the Company, a corporation duly organized under the laws of the State (s) of (hereinafter called the Company) : Witnesseth that — (a) "Whereas by a Proclamation dated December 26, 1917, the President, acting under the powers conferred on him by the Consti- tution and Laws of the United States, by virtue of the joint resolu- tions of the Senate and House of Kepresentatives bearing date April 6 and December 7, 1917, respectively, and particularly by virtue of Section 1 of the Act of Congress ai)proved August 29, 1916, entitled " An Act making appropriations for the support of the Army for the fiscal year ending June 30, 1917, and for other purposes," took possession of and assumed control at 12 o'clock noon on December 28, 1917. for war purposes of certain railroads constituting a system or systeuis of transportation (not including the railroad of the Com- pany described herein), and appointed William G. McAdoo Director General of Railroads ; and (h) AViiEREAs the Act of Congi-ess called herein the Federal Con- trol Act, approved by the President March 21, 1918, brought under Federal control the railroad hereinafter described under the follow- ing provision.'" That every railroad not owned, controlled, or operated by another carrier company, and which has heretofore competed for traffic with a railroad or railroads of which the President has taken the i:>ossession, use. and control, or which connects Avith such rail- roads and is engaged as a common carrier in general transportation, shall be held and considered as within 'Federal control,' as herein (80) 81 defined, and necessary for the prosecution of the Avar, and shall be entitled to the benefits of all the provisions of this Act*'; and ((?) Whereas by Proclamation, dated March 29, 1918, the Presi- dent, pursuant to said Federal Control Act authorized the said "Wil- liam G. McAdoo, as Director General, either personally or through such divisions, agencies, or persons as he may appoint, and in his own name or in the name of such divisions, agencies, or persons, or in the name of the President, to make with the carriers, or any of them, such agreements as may be necessary and expedient respecting any matter concerning which it may be necessary or expedient to deal and to make any and all contracts, agreements or obligations necessary or expedient in connection with the Federal control of such railroads as fully in all respects as the President might do : Xow, THEREFORE, the parties hereto, each in consideration of the agreements of the other herein contained, do hereby covenant and agree to and with each other as follows : Sectiox 1. (a) This agreement shall be binding upon the United States, the Director General, and his successoi-s, and upon the Com- pany, its successors and assigns, This agreement shall not be construed as creating any right, claim, privilege, or benefit against either party hereto in favor of any State or any subdivision thereof, or of any individual or cor- poration other than the parties hereto. (7j) AYlierever in this agreement the words Director General are used, they shall be understood as designating William G. ISIcAdoo, or such other person as the President may from time to time appoint to exercise the powers conferred on him by law with relation to Federal control. Section 2. The Company's said railroad affected by this agree- ment shall be considered as including the following roads and properties : Section 3. (a) The Company accepts the terms and conditions of said Federal Control Act and the terms of this agreement, and ex- pressly accepts the covenants and obligations of the Director Gen- eral in this agreement set out and the rights arising thereunder in full adjustment, settlement, satisfaction, and discharge of any and all claims and rights, at law or in equity, which it now has or here- after can have against the United States, the President, the Director General, or am- agent or agency thereof by virtue of anything done or omitted, pursuant to the acts of Congress herein referred to. This is not intended to affect any claim said Company may have against the United States for carrying the mails or for other services rendered not pertaining to or based upon the Federal Control Act. 105889°— 19 G 82 (h) The Company, on its own initiative or upon the request of the Director General, shall take all appropriate and necessary cor- porate action to carry out the obligations assumed by it in this agree- ment or lawfully imposed upon it by or pursuant to the Federal Control Act. Section 4. It is expressly agreed and understood that the posses- sion and use of the railroad property herein described subject to the right of the Director General to take the said property into actual possession as hereinafter provided, as a war emergency, shall remain in the Company, and the Company shall continue to operate the same, and all revenues accruing from the operation thereof shall belong to the Company, and all expenses arising out of or incident thereto, and all taxes of whatsoever character imposed thereon, or upon the Company shall be paid and borne by the Company, it be- ing expressly agreed that unless and until the Director General shall as a war necessity take over the actual possession and operation of said railroad, he assumes no obligation for the payment of any ex- penses or charges in connection therewith, nor of any risk or acci- dent in connection with the operation or control of said property. Section 5. All rates, fares, and charges for transportation services performed jointly by the Company and any transportation system in the possession of, and operated by, the Director General shall be dividecl fairly between the Director General and the Company. It is agreed that the arbitraries and percentages of joint rates, both passenger and freight, received by the Company as of January 1, 1918, shall not be reduced, and whenever joint rates have been or shall be increased, the Company shall receive as its proportion of such increased joint rates amounts in the same ratio as its arbitraries or percentages bore to the joint rates before they were increased. Section 6. The Company shall receive an equitable allotment of the cars (and, where feasible, motive power) in the possession or under the control of the Director General. For the equipment thus furnished it shall pay the per diem rentals now in effect or as they may be established from time to time by the Director General, and like rentals shall be paid by the Director General to the Company for any of the Company's equipment used by him : Provided, how- ever, That there shall be a time or reclaim allowance to roads of 100 miles or less in length, of two days, which will be assumed by the delivering road. Section 7. Such arrangements shall be made for the routing over the Company's line of competitive traffic as shall insure to the Com- pany in any month the same proportion of such competitive traffic as it had of the total of such traffic for the average of the three years, counting the calendar years of 1915, 191G, and 1917, taking 83 into account both class and quantity of tonnage, it being understood and agreed that if in any month such proportion of competitive traffic delivered to the Company shall be less than that based on the average for the three-year period, the Director General will, within 60 days after the close of any such month, deliver such additional amount of competitive traffic as shall make up the required amount. Section 8. If differences arise as to any matter arising under this contract, either party may refer the question to the Interstate Com- merce Commission, and its decision shall be final and binding. Section 9. The Company, so far as practicable, shall have the right to use the purchasing agencies of the Director General in the purchase of materials and supplies at the prices which the Director General shall pay therefor, and to have its repairs done in the shops of its connecting lines to the same extent and upon the same terms as were enjoyed before Federal control; where roads have hereto- fore not had the repairs done at the shops of the connecting line, but at private shops which have since been closed, they may have their repairs done at the shops of the connecting line upon fair terms. Section 10. There shall be no cliscriminaton against the Company in the matter of publishing tariffs and routing. In all publication of rates, tariffs, and routing, covering the territory in which the Com- pany's road is situated, the Company shall be treated in the same manner as the trunk lines, except that nothing in this section shall be construed to require the establishment of joint rates where joint rates were not in effect at the commencement of Federal control. Section 11. It is expressly agreed that if in the opinion of the Director General a necessity shall arise making it necessary or desir- able for any purpose connected with the war, for the Director Gen- eral to take into his own hands the possession, control, and operation of said railroad and the properties herein described, he shall have the right to do so. In such event this contract shall be terminated and a new contract made providing for the payment of compensation as provided by the Federal Control Act; and if in the meantime it becomes necessary in his opinion to issue any orders or directions to said Company affecting the movement of troops or war supplies, said Company shall obey such orders or directions. Section 12. In view of the foregoing covenants and agreements, and subject thereto, the order of relinquishment issued on the day of June, 1918, is hereby rescinded and set aside as of the date when the same was issued; and the said railroad and the properties herein described are hereby brought fully within the terms and under the control of the said Federal Control Act, the same in all respects as if the said order of relinquishment had not been issued. 84 Section 13. The Director General will formulate definite rules and regulations governing exchange transportation, which rules and regulations shall be made applicable to the Company without dis- crimination. Execution. In witness whereof, these presents have, on the day and year first above written, been duly signed, sealed, and delivered by William G. McAdoo, Director General of Railroads, and duly signed, sealed, and delivered by the , by its President, and its corporate seal affixed hereto, attested by its Secretary, such execution and delivery on the part of said Company having been duly authorized and directed by vote of its Board of Di- rectors at a meeting duly called and properly held on the day of , 1918, which action of said Board of Directors was duly authorized by vote of the stockholders of the said Company, at a meeting duly called and properly held at on , certificates of which meetings, duly attested by the Secretary of said Company, have been lodged with the Director General. Director General of Railroads. ._ Rail Company. By Attest: President. Secretary. MEMORANDUM OF AGREEMENT BETWEEN WILLIAM G. McADOO, DIRECTOR GENERAL OF RAILROADS, AND THE AMERICAN RAILWAY EXPRESS COMPANY. This agreement, made this 2Gth day of June, 1918, between. William G. McAdoo, Director General of Eaih'oads, hereinafter called the Director General, acting on behalf of the United States and the President, under the poAvers conferred on him by proclama- tions of the President dated December 26, 1917, and March 29, 1918, and the American Kailway Express Company, hereinafter referred to as the Express Company, Wifnesseth: That for and in consideration of the mutual covenants, separate services, and payments hereinafter recited to be by the parties kept, performed, and made, the parties do hereby agree as follows : I. That in the interest of greater efficiency in express service and effecting economies in operating expenses of both the railroads under Federal control and the Express Company the Director General hereby employs the Express Company as the sole agent of the Gov- ernment under the supervision of the Director General of Eailroads to conduct the express transportation business upon all lines of rail- road under Federal control and upon such other systems of trans- portation or parts thereof as in the judgment of the Director General it may be necessary or desirable to include. II. This contract shall take effect on July 1, 1918, and shall continue during the full period of Federal control as that period is limited by section 11 of "An Act to Provide for the Operation of Trans- portation Systems while under Federal Control, for the Just Com- pensation of Their Owners, and for Other Purposes," approved March 21, 1918. III. The express transportation business to be carried on under this contract is understood to mean such transportation business as is (S3) 86 commonly carried on by express companies at the present time, or as may be carried on by them during the continuance of this contract, and for the purpose of this contract it is agreed that the express busi- ness contemplated by this contract shall include all matter carried on passenger, express, or mail trains of the railroards, except bag- gage of passengers and theatrical scenery and belongings when checked on regular transportation, United States and railroad mail, including parcel-post matter, corpses when accompanied by some one in charge, news trunks and property necessary to carry on the usual news business, goods and material for the use of the railroads, and supplies for railroad eating houses and dining ears. The Director General as well as the Express Company shall have the right to carry on such trains freight from the Orient imported by Coast ports, newspapers, milk, and cream and returned empties: Provided^ hoio- ever, That nothing in this agTeement shall prevent the Director Gen- eral from transporting horses, carriages, or cattle or other classes of freight upon passenger trains when necessary in emergencies to avoid delay to freight shipments ; and provided further, that no explosives, inflammable articles, or acids shall be considered express traffic except such as it may be lawful to transport on passenger trains v\dien prop- erly packed, marked, and certified to as required by the regulations of the Interstate Commerce Commission or other public authority for the transportation of explosives, by the rules of the American Rail- way Association, and such regidations for the transportation of in- flammable articles and acids as may be fixed by the Director General. The maximum weight to be carried in any of the cars carrying ex- press business shall not exceed a limit which in the judgment of the Director General is necessary for safety. Articles which can only be loaded and unloaded through end doors of express or baggage cars causing delays to passenger trains in switching for this purpose shall not be accepted by the Express Company unless a special car is fur- nished and charged for at the carload rate, and the Express Company shall not accept shipments which can not be so handled as to avoid unusual delays to the trains of the Government. Said express transportation business shall be conducted under such rates, charges, classifications, regidations, and practices as are now or may hereafter be lawfully established. The Director General shall take all steps lawfully necessary to make any change in such rates, charges, classifications, regulations, and practices. The Ex- press Company sliall propose no reduction in rates or charges without the prior approval of such reduction by the Director General. The Express Company shall solicit no express shipments disapproved by the Director General. 87 IV. The Director General shall furnish adequate and suitable space in cars properly equipped, heated, lighted, and lettered American Railway Express Company of the kind customarily furnished by railroad companies for the use of express companies on such pas- senger, mail and express trains as may be designated from time to time by the Director General over each of the lines of railroad covered by this contract for the transportation and proper handling en route of all express matter tendered by the Express Company at any station at which said trains make regular stops and shall carry such express matter and the safes, packing trunks, supplies, and equipment of the Express Company, together with the messengers, helpers, and guards of the Express Company necessary for the handling and protection of such express matter to destination or the proper transfer points on said railroads. The Director General shall, so far as it can conveniently be done without interfering with his business, permit the Express Company to use a portion of sta- tion buildings on the lines covered by this agreement without charge therefor for the reception, loading and unloading, safe-keeping, and delivery of express matter carried under this agreement. Where special services or facilities have been furnished upon payments by the express companies in addition to the percentage of gross earn- ings both parties hereto shall have the benefit of such arrangements until otherwise determined by the Director General or by the Ex- press Company after notice and hearing. The movement of express shall be under the control of the Director General at all times and transported over such lines of railroad and on such trains as he may direct in the interest of economy in car service by utilizing available space and with proper regard for the necessity of prompt movement. V- Said Express Company shall use its teams, property, offices, and other facilities, and its agents and employees in operating an express transportation business on all the lines of railroad under Federal control, and upon such other systems of transportation, or parts thereof, as in the judgment of the Director General it may be neces- sary or desirable to include; and in the conduct of said business will exert itself in all proper ways to make said business satisfactory to the public and to the Director General. All contracts between the Express Company and railroads and systems of transportation not under Federal control shall be subject to the approval of the Director General. 88 yi. The Express Company sliall be liable for all loss or damage to the facilities furnished by the Director General to the Express Company for use in the express transportation business caused by the Express Company, its agents, or employees. As between the Director General and the Express Company, the Express Company shall be liable for any and all claims on account of loss, damage, or delay to its own property or the property of others in its charge carried under the provisions of this contract, and it shall assume all risk of injury or death to its agents or employees while engaged in its business on any of the lines or premises covered by this contract ; and shall indemnify and save harmless the Director General or any agent or employee of the Director General, including any railway company engaged in the operation of any railroad under Federal control covered by this contract, -and the employees of any such company, against all claims, demands, suits, and actions what- soever that maj' be begun against any of the same on account of any claim arising or growing out of the undertaking so above assumed whether in law or in equity or before any compensation board, tribunal, or court whatsoever; and any amounts paid hereunder shall be charged to operating expenses. VII. In any action at law or in equity or other proceeding brought against said Express Company before any compensation board, court, or other tribunal it will make no defense, except with the approval of tlie Director General, upon the ground that it is by virtue of this contract an instrumentality or agency of the Federal Government; nor will it seek to transfer to a Federal Court any such action brought against it in any state court upon the like ground except Avith the approval of the Director General. Any and all other legal rights of the Express Company except as above limited are expressly reserved. YIII. From the gross revenue earned on the transportation by the Ex- press Company of all the express traffic on all lines under Federal control covered by this contract, under such rates, charges, and classifications as shall be in force, it shall pay to the Director General 50.25 per cent. To the balance of tlie rcvciiuos tlius remaining there shall l)e added the following: Ciross revenue derived fi-om express transportation operations over any lines not under Federal control, less payments to such lines under contracts in force with them ; all miscellaneous income derived from 89 express operations, including rentals, compensation received for the sales of money orders or other financial paper, charges assessed in addition to transportation charges, such as value charges, and income from money or securities invested in the dividend guaranty fund as described in paragraph -i of this section. The resulting total shall be known as " Gross Contract Income." From the gross contract income as here defined, the Express Com- pany shall defray the operating expenses, rentals, taxes, except war taxes, and any other proper expenditures not disapproved by the Director General incurred in express operations, the remainder being termed ''Contract Income for Division." The term "Operating expenses," as herein used, shall embrace all items prescribed by the Interstate Commerce Commission's classification of express accounts as operating expenses for express companies. From the contract income for division, an amount equal to 5 per cent of the total par value of the outstanding capital stock of the Express Company shall first be set apart for the payment of divi- dends or general corporate purposes, herein termed " Primary Allow- ance," Avhich shall be cumulative. Any excess of contract income for division over said primary allowance, up to 2 per cent of the par value of the capital stock of the Express Company, shall be divided one-half to the said Company to be set apart for dividends or gen- eral corporate purposes, and one-half to the Director General. The remainder to the extent necessary shall be paid into a g-uaranty fund,, which fund shall not at any time exceed an amount equivalent to 10 per cent of the total par value of the outstanding capital stock. ^ This fund shall be held by the Express Company to insure its ability to pay for each year during the life of this contract an amount equal to 5 per cent upon the total par value of its capital stock from July 1, 1918. Any earnings from such fund shall be considered as contract income for division. If the contract income for division in any year shall not be equal to five per cent of the capital stock as herein provided, any amount lacking shall be withdrawn from said guaranty fund to supply such deficiency to the extent that said fund is sufficient for that purpose, and the said fund shall thereafter be restored from the contract in- come for division after deducting the five per cent primary allow- ances and the next two (2) per cent as hereinbefore provided, in the same manner as the fund was originally created. Provided, that should there not be a sufficient sum in said guaranty fund to furnish the amount necessary to pay said primary allowance at any time, the said deficiency shall be paid from said fund when there shall be suffi- cient money therein. Any amount in said guaranty fund at the termination of this con- tract, or that may be due thereto and not required for the purpose 90 for wliicli the fund was established, shall be divided between the Express Company and the Director General in the proportion of forty per cent to said Express Company and sixty per cent to the Director General. After the accumulation of the guaranty fund, any contract income for division in excess of the said five per cent primary allowance and the said two (2) per cent hereinbefore provided shall be divided as follows : The next three (3) per cent upon the total par value of said capital stock in the jDroportion of one-third to said company and two-thirds to the Director General; and any sum beyond that amount in pro- portion of one-fourth to said company and three- fourths to the Director General. It is the understanding and agreement of the parties that the " contract income for division " is not the income or property of the Express Company but is a fund resulting from the terms of this agreement in which the Director General and the Express Company have a mutual interest. The Express Company has no right to any portion of this fund except that which it finallj'^ retains under the terins of this agreement and which is the compensation paid it by the Director General for the performance of its service as the agent of the Director General in the transaction «f this express business. Only that portion of the fund belonging to the Express Company shall be included in the net income of the Express Company for taxation under titles 1 and 2 of an act entitled " An act to provide revenue to defray war expenses, and for other purposes," approved October 3, 1917, or any act in addition thereto or any amendment thereof or any supplements thereto. If the Express Company shall be recjuired to pay said war taxes upon any part of the contract in- come for division belonging to the Director General, the Director General shall and does hereby indemnify and save harmless the Express Company against any payments that .may hereafter be demanded of or imposed upon said Express Company on account of taxes that may be levied under titles 1 and 2 of said act upon that part of the said contract income for division paid or credited to the Director General hereunder. The term "Revenues Earned," as used herein, is intended to mean the amount of revenue earned for the service performed, less any sums subsequently determined to be uncollectible. IX. The Express Company shall, within sixty (60) days after the end of each calendar month, pay to the Director General a sum of money equivalent as nearly as may be to the precentage of gross revenues earned in such month provided for in the first paragraph of Section 91 "VIII; within sixty (GO) days after June 30th and December 31st of each year, the Express Company shall render to the Director General a statement in such form and detail as he shall require, showing the gross revenues earned in said six (6) months' period ending witli June 30th and December 31st, and within ten (10) days thereafter it shall pay to the Director General the balance, if any, due to the Director General under the first 'paragraph of Sec- tion VIII. Within ninety (90) days after the end of each calendar year or the termination of Federal control said Express Company shall render to the Director General a statement in such form and detail as he shall require, showing the results of operation of said Express Company under this contract in a year, or part thereof, determined as hereinbefore provided, and within ten (10) days after the rendi- tion of said statement, shall pay to the Director General whatever sum shall be due to him under this contract. X. The salaries paid by the Express Company to its officers shall be reasonable. All salaries in excess of $10,000 a year shall be reported to the Director General. If he shall determine that any such salary is um-easonable and shall notify the Express Company in writing the maximum salary which he regards as reasonable, any amount in excess of such maximum salary so fixed which shall be paid to such officer for salary after the giving of such notice shall be excluded from any accounts of the Express Company used in determining the contract income for division. XI. The accounts of the Express Company shall be kept in form and manner prescribed by the interstate Commerce Commission and the Government shall have the right to inspect such accounts at any and all reasonable times through its duly authorized agents; but the Express Company shall not be required to apportion its earning-s among the various individual railroad lines and systems or to ascer- tain the earnings accruing on any individual railroad line under Fed- eral control, and the Director General may from time to time require the Express Company to furnish such statistics or special statements as may be reasonably necessary in connection with the operations under this contract. XII. The Director General shall have the right to require the trans- portation without charge by the Express Company over any and all lines of railroad under Federal control of all packages of money, 92 valuables, papers, and shipments of materials and supplies ordinarily forwarded by express, used in the operation of any of the railroads under Federal control : Promded^ hoivever, That the Express Com- pany shall not be liable for any loss or injury of said shipments so carried unless caused by the theft, dishonesty, or carelessness of the employees of the Express Company. When the Express Company and tlie railroad un'der Federal control employ the same agents, the receipt of the express messenger on the train for railway property shall constitute a delivery to the Express Company and the receipt of the party to whom the packages may be addressed or his repre- sentative shall constitute a delivery by the Express Company. XIII. The Director General will transport upon the passenger and ex- press trains of the lines covered by this contract free of charge, on passes to be issued by the Director General or proper railway official on proper application therefor," the officers, agents, and employees of the Express Company when traveling in the interest of or upon the business of said Express Company. He wall also transport free of charge upon the freight trains of the lines covered by this contract the equipment and materials of the Express Company required for use by it on the lines covered by this contract, but no hay, grain, or other feed stuffs shall be so transported for more than 500 miles. He will also transport free of charge equipment, stationery, and office supplies of the Express Company in cars or parts of cars set apart for the use of the Express Company. The Express Company as- sumes the risk of loss or damage resulting from all such transporta- tion and agrees to indemnify and save harmless the Director General or any individual railroad under Federal control covered by this con- tract involved therein from all claims for loss or damages arising from such transportation. XTV. The Director General will transmit for the Express Compan}-, free of charge, over all telegi\aph or telephone of individual railroads or raili'oad systems lines operated as a part of said lines of railroad under Federal control covered by this contract, all business messages relating to the express transportation business of such railroads or railroad systems to be conducted by said Express Company: Pro- vided, hcncever. That the Express Company releases and holds harm- less the Director General or any Railroad Company from all liabili- ties arising from any error or delay in the transmission of such mes- sages or from failure to forward and delivci" the same. 93 XV. The Director General ma}' employ any of the employees of the Ex- press Company upon such reasonable terms as shall be agreed npon between the parties, and the Express Company may employ such em- ployees of the Director General or agents of the railroads, and upon such terms as may be agreed upon from time to time by the Director General and the Express Company. Where station agents of the Director General or of the railroad are employed by the Ex- press Company, the Director General shall pay such agents the en- tire compensation for their services to the Director General, the railroads, and the Express Company, and no payment shall be made direct by the Express Company to any such agent whose services may be so furnished by the Director General. The Express Company shall pay to the Director General the usual commissions heretofore paid upon express transportation business at stations where such station agents are joint agents as its share of the agent's compensation. Liability for personal injury or death of any joint employee, when it can be determined that such injury or death was sustained while the employee was engaged exclusively in express service, will be borne by the Express Company, and the Express Company will bear all costs and expenses incident to the settlement thereof. When it can be determined that such injury or death was sustained while the employee was engaged exclusively in railroad service, the Direc- tor General will bear all costs and expenses incident to the settlement thereof. Where the cause or causes of such injury or death can not be determined the Express Company and the Director General will bear the same in the proportion in which the wages paid by each bear to the total compensation, in which latter case no settlement shall be made by either party without the consent of the other. XVI. When cars other than the regular equipment assigned for express traffic are requested by the Express Company in order to carry ship- ments of an unusual character, and such cars are furnished by the Director General, said Express Company shall pay the expense of fitting up such cars for its use and of restoring the same to their normal conditions thereafter, the reasonable compensation therefor to be determined by the Director General. XVII. The Express Company will load and unload its express matter, or require the shippers and consignees to do so, upon or from all cars assigned regularly or specially to express transportation traffic. 94 XVIII. All of the agents and employees of the Express Companj^ while on the premises or on lines of railroad under Federal control covered by this contract shall at all times conform to the general rules in force thereon, and in case any messenger or other employee on any said line shall from any cause be objectionable to the Director General he shall be removed or discharged upon the written request of the Director General or of the Director General's principal operating representa- tive on such line. XIX. The Director General shall allow the Express Company the usual mileage rates on all cars belonging to the Express Company and used in handling the business under this contract over the railroad lines operated and controlled by the Director General. The mileage com- pensation allowed by the Director General to the Express Company shall be considered a part of the gross contract income of the Express Company. XX. The Express Company will take over and continue the payment of pensions to former employees of the several express companies, which employees have heretofore been pensioned under their rules, but no such pension shall exceed One Hundred and Twenty-five ($125.00) Dollare per month. The officers and employees of the sev- eral express companies who may be employed by the Express Com- pany shall retain the same rights to pension from said new corpora- tion as they have at the time of change in employment. The plan and pension rules of the Express Company shall be submitted to the Director General and if disapproved by him in any particular shall not become effective until so modified as to meet his approval; the sums paid on account of such pensions shall be charged to operating expenses. XXI. The Express Company will enter into a contract with the Express Companies parties to memorandum of agreement with the United States, dated , 1918, for the period of this contract as the agent of said Express Companies in their foreign business and for the handling of money orders and other financial paper, and for such other purposes as may be desired, unless in the judgment of the Director General the express transportation business conducted by said Express Company will be prejudiced thereby. The Express Company shall be paid by said Express Companies such compensa- tion for its services as shall be agreed upon between the parties from 95 time to time as fair and reasonable, which compensation shall be considered as a part of the gross contract income of the Express Company. The Director General, however, may require said con- tract to be submitted to him for his approval, and no contract dis- approved by him shall thereafter be effective between the parties. XXII. The Director General will perform all necessary switching service for cars in express service on the lines under Federal control covered by this contract, such as ordinary switching in connection with regular trains at stations w^ich involves movement to and from the stations, and also to and from a track or siding assigned for the handling of express traffic and interchange of cars between railroads over which the Express Company operates, and cars loaded with live stock in transit to and from stockyards for feed, water, and rest, in compliance with the law and service necessary by reason of the failure of the railroads to make schedule connection. For miusual or extraordinary service rendered, such as special switching to and from industry tracks or occasioned by reconsignment of cars and service of like nature, the Express Company shall pay compensa- tion at the rate or charge of the railroads made for similar services to other parties. XXIII. The Express Company agrees that the icing and refrigeration of cars in the service of the Express Company while on the lines covered by this contract shall be performed by the agency employed by the Director General for this purpose, the Director General agreeing that the charges for such service shall be reasonable. XXIV. No evidences of indebtedness except ordinary bank or commercial loans for current purposes shall be made or issued by the Express Company without the prior approval in writing of the Director General; nor shall any lien of any kind be placed by it upon any property of the new corporation without the prior approval in writ- ing of the Director General. All loans shall be reported to the Director General as soon as made. The stock issued by the Express Company shall be sufficient to pay at par for the property transferred to it and to provide the cash necessary for working capital. The initial issue of the stock of the Express Company shall not be made until such issue shall have been approved in Avriting by the Director General. From time to time thereafter as additional funds may be necessary to purchase addi- 96 tional property or reimburse the company for additional property purchased or for Avorking capital, additional stock may be issued by the Express Company, but no issue shall be made Avithout the ap- proval in writing of the Director General. XXV. Either party to this contract may, after July 1, 1922, by not less than six months' notice in writing, to the other party, cancel this contract. XXVI. The Express Company agrees that it will at any time during the existence of this contract, upon terms to be agreed upon between the parties hereto, establish at such places as may be designated by the Director General, collection and delivery service for baggage and less than carload shipments of freight. XXVII. If during the operation under this contract the gross contract in- come hereunder for any contract year shall not be sufficient to pay the operating expense and taxes of the Express Company for such contract year, it is agreed that the amount of any such deficit shall be deducted from any payments due the Director General thereafter, as a further allowance by the Director General to the Express Company. XXVIII. Any controversy Avliich may arise as to the performance of any part of this contract shall be submitted to and determined by the Interstate Connnerce Commission after full hearing, and its de- cision thereon shall be final. XXIX. The term " capital stock " or " outstanding capital stock," as used herein, shall mean and include only stock issued by the Express Com- pany upon the approval of the Director General and not canceled. The term "Director General," as used herein, shall be taken to ap- ply to any official or person who may noAV exercise the authority of the United States with respect to said lines of railroad under Eederal control, or may hereafter, as the successor of the Director General, exercise such authority. The word " railroad," as used herein, shall include all systems of transportation and appurtenances thereto under Federal control covered by this contract. 97 Execution. In witness Avhereof these presents in duplicate originals have, on the clay and year first above written, been duly signed and delivered by William G. ^NfcAdoo, Director General of Railroads, and duly signed, sealed, and delivered by the American Railway Express Com- pan3\ by George C. Taylor, its president, thereto duly authorized by a vote of the directors of the company at a meeting duly called and held on June 26. 1918, certificate of which authorization, dul}^ attested by the company's secretary, is hereto attached. William G. ISIcAdoo, Director General of Railroads. By Walker D. Hines, Assistant Director General. American Railway Express Company, By George C. Tayix)r, Its President. Attest : F. P. Small, Secretary. Certificate of Approval by Board of Directors or American Railway Express Company. At a meeting of the board of directors of the American Railway Express Company, held at the office of the company at 65 Broadway, in the city of New York, on the 26th day of June, 1918, on motion duly made, seconded, and carried, it was Resolved, That the attached draft of proposed contract between the Director General of Railroads and the American Railway Express Company, relating to the operation, compensation, and other matters connected with the express transportation business over the transpor- tation sj'stems under Federal control, be approved, and the President and Secretary be insti'uctcd to execute the same. George C. Taylor. Attest : F. P. Small, Secretary. 105889°— 19 7 PUBLIC ANNOUNCEMENTS. PASSENGER TRAVEL. Jakuary 5, 1918. The Director General said : An important change in the passenger train service on the eastern roads goes into eifect Sunday, January 6. I have consented to this change because it is imperatively necessary that jjassenger travel shall be reduced as much as possible during the present serious emer- gency which confronts the people in the eastern section of the coun- try. By elimination of unnecessary passenger train service, much motive power, skilled labor, track and terminal facilities are released for the handling of coal and food and other supplies essential to the life of the people as well as to the suc«ssful prosecution of the war. Every patriotic citizen can directly help the Government in clearing up the present unsatisfactory situation on the railroads by refraining from all unnecessary travel at this time. The breakdown in passenger service of the various railroads in the East has not made a pleasant impression on the public, but it must be borne in mind that the railroad companies in the East are still seriously congested with an unusual amount of freight traffic, the movement of which is more vital to the country than the movement of passengers, and that the weather conditions for the past two weeks have seriously impeded railroad operations. WAGE COMMISSION. January 18, 1918. Director General of Railroads McAdoo announced this afternoon the appointment of a Railroad Wage Commission to make a general investigation of the subject of railroad wages in the United States. The Director General named as members of the commission Franklin K. Lane, Secretary of the Interior ; Charles C. McChord, member of the Interstate Commerce Commission; J. Harry Covington, chief justice of the Supreme Court of the District of Columbia; and Wil- liam R. Willcox, of New York. The members of this commission are all men who have had experience in dealing with the problems re- ferred to it. (99) 100 Secretary Lane was for eight years a member of tlie Interstate Commerce Commission, and was also the chairman of the board, consisting of himself, the Secretary of Labor, Daniel Willard, and Samuel Gompers, Avhieh brought about the agreement between the railroads ancl the four railroad brotherhoods to accept the Adam- son Law. Commissioner ]McChord was formerly chairman of the Kentucky railroad commission. During his eight years of service as a member of the Interstate Commerce Commission he has been largely con- cerned with those regulatory laws which directly affect railroad em- ployees, and during 1916 had charge of the car-shortage problems. Judge Covington, prior to his appointment as a Federal judge in 1911, was a Member of Congress, serving on the Committee on Inter- state and Foreign Commerce, the committee which considers all rail- Avay legislation in the House of Representatives. He was the Presi- dent's personal representative last summer on a mission to the Pacific Coast States in connection with labor troubles existing there. ]Mr. AVillcox is the present chairman of the Eepublican national conunittee. After serving as postmaster of New^ York City, he was appointed by Gov. Hughes chairman of the New York public service commission for the first district, and served upon that body for six years. The commission has been appointed vdth a vieAv to determining the Avages for the different classes of labor upon the railroads. It will begin its work at once, and will report to the Director General, giving its recommendations in general terms as to changes that should be made. Upon this report the Director General will make a decision. In dealing with such a complex problem as railroad wages, the powers of the commission must be very broad if it is to report a satis- factory result. It is authorized to make a general investigation of the whole field of railroad labor, the compensation of persons in the service of the railroads, the relation of the railroad wages to wages in other industries, the conditions in different parts of the country, the special emergency respecting wages to wages which exist at this time owing to war conditions, and the high cost of living, and the relation bctAveen the different classes of railroad labor. The creation of this connnission is the culmination of a large num- ber of complaints and demands of employees which have been pending before the railroad managers for some time past. These complaints and demands were brought to the attention of the Director General shortly after the assumption of the operation of the railroads by the Government. They came in all forms, from various groups of unor- ganized employees of the railroads. lOi President Wilson sent the folloAvin*;- letter to each nienil)er of the commission : May I not assure you of my appreciatiou of your acceptauce of tlie invltatioi? extended to you by tlie Director CJeneral of llailroads to serve as a member of the more important commission he has appointed to inquire into the question of wages of railroad employees in the United States? With warm regard, Cordially and sincerely yours. WooDRow Wtlsox. DUTIES OF REGIONAL DIRECTORS. February 4, 1918. Dear Sirs: Tlie followinc: is an ontline of the functions of the Eegional Directors. I shall be glad if you Ayill bring to ni}" attention from time to time any points which are not clear to you or which you think call for modification or extension. Broadly speaking, I wish to give you power to direct railroad oper- ations in your territory so as to handle traffic with the least conges- tion, the highest efficiency, and the greatest expedition. As far as is consistent with these objects you will, of course, keep down operating expenses. I have put responsibility upon you for the entire operating situa- tion. I mention the following simply as few illustrations of the mat- ters which are thus intrusted to you : You should see that terminals are used to the best advantage and that such changes in established practices are made as will bring this about. Where minor capital expenditures are needed to establish new con- nections for the better use of terminals, you will endeavor to get some or all of the interested companies, by their Aoluntary action, to ar- range therefor, and will refer to me cases of expenditures which can not be so arranged. You will order such changes in routing of traffic, using any lines or parts of lines in combination as v\ill avoid uneconomical routes and congestion of particular terminals or railroads, giving due con- sideration to shippers' interests. The Commission on Car Service has been replaced by the Car Service Section of the Division of Transportation (the personnel re- maining largely the same). The Car Service Section — (a) "Will have charge of all matters pertaining to car service, including the relo- cation of freight cars as between individual railroad and regions. (ft) Will issue instructions through the llegional Director providing, on appli- cation of proper governmental authorities, for preference in car supply and movement. (c) Will receive from railroads such reports, periodical or special, as it may require in order to keep fully informed with respect to car service, embargo or transportation conditions. 102 (f7) Must be promptly informed of all embargoes placed, modified or removetl, and will, from time to time, recommend such embargo policies and exemptions as the needs of the Government, seasonal requirements, or other circumstances may demand. (e) Will deal directly with railroads with respect to matters within its juris- diction, and will keep the Regional Directors advised of all instructions or orders in whicli they are concerned. You will keep fully advised as to the situation concerning the use of locomotives, repairs to locomotives, amount of shop capacity, and amount of shop labor available for locomotive repairs. You will have power to promote the general good of the transportation situation in your region by making transfers of locomotives from one railroad to another or of locomotives needing repairs from one shop to another and transfer of shop labor from one shop to another. Such transfers, should, of course, have reference to any agreements between labor and the company affected and be made with just regard to the welfare and rights of employees. You will, of course, have like duty and power respecting car repairs. As to labor, you have been advised of the appointment of the Eailroad Wage Commission. The general policy as to all labor is that there shall be no interruption of work because of any contro- wages and living conditions will have the consideration of the Rail- road Wage Commission. Pending action by me upon the report of that commission there ought not to be any radical change in existing practices without sub- mitting the matter to me for approval. But it should be understood that the usual methods of settling by agreement ordinary grievances and complaints shall continue as heretofore and that the companies are free to negotiate as heretofore with their employees and are ex- pected to observe faithfully existing agreements with their em- ployees. In cases of doubt about new negotiations with employees, the advice of the Director General should be sought. You should bear in mind that labor has the very natural feeling that railroad managers, although now working for the Government and on Government account, necessarily continue the same concep- tion of and attitude toward labor problems that they had when act- ing under private management. I am told that labor will have a natural suspicion that any unfavorable action taken by railroad managers indicates a purpose on their part to make governmental control a failure and to use it for promotion or vindication of their own theories. For these reasons, great care should be taken to avoid anything having even the appearance of arbitrary action, and it will be ex- pedient, at least at the outset and until the matter shall take more definite shape, not to dispose, unless by mutual agreement, of any 103 labor claims involving large questions of policy without first sub- mitting the matter to me. In the centra] organization in Washington I propose to have a labor man as a member of my staff who will give his special attention to labor problems, not onl}"^ to the problems of wages and conditions but also to the problem of aiding the railroads in obtaining sufficient labor and of bringing about a better understanding between officers and employees. The morale and esprit de corps of officers and men should be brought to the highest standards. There are several matters involving broad questions of public policy concerning which I wish you to make careful studies and report to me with your recommendations. 1. To what extent if at all should additional passenger service be discontinued in order to save coal, labor, locomotives, and shop capac- ity for freight service. In arriving at any recommendations on this matter it is very important to give due consideration to public conven- ience. It is quite probable that I shall wish to take the matter up informally with State railroad commissions as to any reductions in service which you think should be made. In dealing with such mat- ters the local point of view must be considered and the State commis- sions afford a useful instrumentality for obtaining this point of view, and also, to the extent that we can act in harmony with the commis- sion's views, for satisfying local public sentiment as to what is done. So far the State commissions have evinced a commendable spirit of cooperation. 2. I wish you also to make careful study of the extent to which (a) freight solicitation should be discontinued or diminished and freight and passenger agencies, freight officers, ticket offices, etc., discontinued or consolidated ; (h) the extent to which traffic officials, soliciting or otherwise, should be transferred to other service and to what other service they should be assigned; and (e) extent to which, if at all, any portion of these forces should be released from service. 3. I wish you also to make a study of •(«) the extent to which du- plications of service can be avoided, both passenger and freight; (b) extent to which fast freight service can be discontinued or slowed down; (c) extent to which less-than-carload service can be consoli- dated or diminished ; at all times having reasonable consideration for the public convenience. 4.. I would like to have your Adews as to the extent to which the making of purchases can be unified either for the entire coimtr}^, or for the separate regions, or for j^arts thereof, accompanying it with a statement of the advantages which you think would result from such unification. o. The extent to which standardization may be effected in your region on the railroads in your territory (a) with respect to locomo- tives — the various types which will be required to effect the best 104 standardization; (h) freight cars, open and box cars, and the various types which will be best adapted for use in your territory. Your recommendations should be made in reference to the adoption to the same standards throughout the United States except in so far as local conditions can make specific types or designs desirable to meet the peculiarities of such local conditions. G. In general, I shall be glad to have you make a study of the extent to which various classes of operating expenses can be curtailed or eliminated on account of present conditions of Government possession and control. Of course, you understand that by virtue of General Order No. 6 it will be necessary for local associations to make appli- cations for the Director General's approval if it is desired that they continue to l)e supported out of operating revenues. If any such ap- plications are made to you, I shall be glad to have your recommenda- tions in regard thereto, being guided by the principle that no func- tions should be carried on by associations whose expenses are charge- able against operating revenues except such functions as are reason- ably necessary under the existing condition of Government possession and control, and that only the expense appropriate to such functions should be paid out of operating revenues. On all these matters I shall appreciate your specific recommenda- tions at the earliest practicable date. In dealing with this whole subject it is, of course, important for you to view the matter, and to get the various railroad executives of railroads in your jurisdiction to view the matter, from the entirely new standpoint that all the railroads now constitute a single system to be operated so as to secure the maximum of transportation with the minimum of waste, and that the fact that a readjustment will mean that a particular railroad will lose certain sorts of traffic must be dis- regarded as it is not sufficient reason why the readjustment should not be made, if in other respects it is in the public interest. Certain general matters are having consideration here and some- Avhat later will probably be taken up with j^ou. Examples of these matters are additions and betterments, what equipment not already ordered needs to be provided. I shall be greatly interested in any sug- gestions which you can make to me on these matters at the present time and from time to time. You will of course have the right to continue or discontinue or cre- ate such local committees or i-cpresentatives as you think i)roper to in- sui-e the best results at particular terminals or in particular subdivi- sions of your territory. Doubtless at many important terminals you Avill find it advantageous to select some exceptionally able, aggressive, and tactful railroad representative to take charge of the terminal and to coordinate with the railroad activities, the activities of merchants, coal dealers, truckmen, etc., so as to secure the best possible results in the loading and unloading of cars. 105 I take it that voiir communications to the railroads in yonr region should be to the respective presidents, receivers, or other chief operat- ing officers with such modifications of that practice as you may think advisable, arranging, however, in case of such modifications, that the president, receiver, or other chief operating officer fully under- stands the practice Mhich you pursue. Pending the further shaping of the Avork, there are various general subjects which you should refer to this office and in all such cases I shall appreciate your suggestions or recommendations. Among such subjects are financial problems and legal problems. I wish to emphasize that I do not consider it expedient for the Regional Directors to undertake to establish without my approval, policies of a public character, i. e., policies which substantially affect the character of service rendered the public or the rights of the public. Substantial reduction of passenger service is an example of this character. It is impracticable to define these matters clearly, but practical definition will evolve gradually as cases arise. Meanwhile doubtful questions should be submitted to me. The controlling principle is that the Government being now in possession and control, it is important for the Director General, as the direct representative of the Government, to have a voice in de- ciding matters which primarily affect the public, because we can not expect that the public will be entirely satisfied to have these matters settled by the railroad managers, which in the public estimation will still be regarded as imbued with the attitude of private management, no matter how disinterestedly those managers may be endeavoring to represent the public interest and nothing else. Generally speaking, you will develop your organization as you think necessary, but it seems to me that in any event you will need a competent traffic representative who should be selected Avith the con- currence of Mr. Edward Chambers, who Avill be in charge of the Di- vision of Traffic Avith headquarters at Washington. I think you had better treat your organization as tentative until you have submitted the organization plan to me, as I may, upon consicleration of tentative plan, Avish to make some suggestion upon the subject. Ver}' sincereh' Amours, (Signed) W. G. McAdoo, Director General of RailroaiU. A. H. Smith, Esq., Regwnal Director, New Yorl\ X. Y. R. H. AiSHTON, Esq., Regional Director, Chicago, III. C. H. Markham, Esq.. Regional Director, Atlanta, Ga. 106 GENERAL SUMMARY OF WEATHER OVER THE DISTRICTS OF THE UNITED STATES TO EASTWARD OF THE MISSISSIPPI RIVER DURING THE WINTER 1917-18 TO DATE. February 6, 1918. Cool weather set in much earlier than usual over the eastern por- tion of the country, September, on the whole, averaging several de- grees lower than the normal, while October was cold throughout nearly the entire month, almost winter conditions prevailing through- out the regions from the Ohio Yalley northward to Canada. There was some improvement during November as to temperature, although over much of the territory from the Mississippi River eastward the month was several degrees cooler than normal. There was a general absence of severe storms in November ; in fact, the month was decidedly dry and there was much less than the normal of snowfall. As a result, outdoor work of all kinds was possible to an unusual degree and under most favorable conditions. Early in December marked cold weather overspread all eastern districts of the United States, and, save for occasional breaks, the cold was continuous throughout the month. The latter part of the month was particularly cold over the more eastern and northeastern districts, the temperature falling to 40° below zero or lower over the northern portions of New York and New England,, and the month, as a whole, was among the coldest during the past 50 years. There was little snow on the ground at the beginning of December, but near the end of the first decade heavy falls occurred from the lower Ohio Valley northeastward to New England and generally in the Lake region, the depths in immediate Ohio Valley ranging from 8 to 14 inches, while at points in the upper Lakes region the depths were nearly twice as great. Toward the end of the second decade additional snow fell over the Appalachian Mountains and to the eastward, at which time all central and northern districts from the Mississippi River eastward were snow- bound, the depths ranging from 6 to 10 inches from the Ohio Valley eastward nearly to the coast, while farther north the depths were from 10 to 20 inches or more, and so Iv.idly drifted as to interfere ma- terially with traffic. A moderation in the cold during the early part of the third decade of December caused most of the snow in the Ohio Valley districts to 107 disappear, and there was a substantial reduction in the depth over the A]3pahichian Mountains and to the eastward. For December, as a wliole, the snowfall was unusuall^' heavy in the Ohio Valle}^ and in most districts to the northeastward. In some sec- tions of this area it was from two to four times greater than the nor- mal, being at many points the heaviest experienced since reliable records have been kept — a period of about 30 years — and in some lo- calities more snow fell in December than usually occurs during the entire winter. As far south as northern Tennessee the monthly totals ranged from 15 to 23 inches. The latter part of December was cold, but without material snow- fall, but early in January moderate falls occurred from the Mississippi Valley eastward, and again about the 7th heavy snows occurred from the middle Mississippi Valley northeastward to the Lakes, the falls in portions of central Illinois and around the southern end of Lake Michigan ranging from 8 inches to nearly 2 feet. High winds ac- companied the snow and much drifting resulted, which greatly inter- fered with traffic. During the early part of the second decade of January, additional snow occurred over wide areas, and at the middle of the month the gi-eater part of the country was snow covered. In the Ohio Valley and Lakes region the fall was again heavy, and the depth of the snow cover ranged from 10 to 15 inches or more. Throughout January, unusually cold weather continued over all districts from the Mississippi Valley eastward, but particularly in the central and southern districts, where the average temperature ranged from 10° to 14° below the normal. The total snowfall for January, 1918, like that of the preceding month, was much heavier than usual in the central districts from the Mississippi Eiver eastward. The falls were particularly heavy around the southern end of Lake ^Michigan and thence southward to and over the southern tributaries of the Ohio. In the great min- ing sections from southwestern Virginia northeastward to Pennsyl- vania and thence westward to Missouri and Arkansas the total snow- fall for the month ranged from 1 to 2 feet or more, and in the vicin- ity of Chicago the totals were from 3 to nearly 5 feet. At times dur- ing the month heavy winds drifted the snow badly. From the Mis- sissippi Valley eastward the total snowfall for January, 1918, was unusually heavy, being in most cases from two to four times as much as is usually received during that month. For the period December 1, 1917, to January 31, 1918, the average temperature over the districts from the Mississippi Valley eastward has been among the lowest of record for an equal period of time in the past 50 years. In this connection it is interesting to note that in the far western districts of the United States the weather during the winter so far lOS has been uniisiially mild and there has been little snow ; in fact, the lack of precipitation in parts of California had already produced serions results, and absence of any matei-ial accumulated snowfall in the mountains is causing serious concern for the agricultural outlook during the crop-gi-owing season. ORGANIZATION OF FINANCE SECTION. March 7, 1918. Director General McAdoo has approved the following plan sub- mitted by the director of the Division of Finance and Purchases for the organization of that division, substantially as follows: FINANCE SECTION. The director of the division will be assisted in the work of investi- gating and providing plans to meet the financial requirements of the railroads throughout the country, whether these needs relate to the taking up and renewal of maturing obligations and the issuance of new securities, or providing for betterments and additions, by an ad- visory committee of three men, experienced in finance, who will be selected, one from the North, one from the West, and one from the South. These men, whose names will be announced later, will serve the Government without compensation, and will have offices in Wash- ington. The gross earnings from operations of the railroads of the country for the calendar year 1917 amounted to something over $4,000,000,000, but the requirements for new capital, outside of revenue from earn- ings, for ncAV equipment, betterments, and additions, have usually called for from $250,000,000 to $750,000,000 per annum, according to the activity of business and the condition of the money market. ITKCIIASING SECTION. In the matter of purchases for the railroads, which will amount to between $1,000^000,000 and $2,000,000,000 per annum, the director of the division Mill be assisted by an advisory committee of three, which will be composed of the general purchasing agents or vice presidents in charge of purchases of three leading railroad systems, who will l)e detailed to Washington for this work, under the supervision of the director of the division. There will also be constituted three additional committees; these committees to be composed of three or more general purchasing agents, oivmen experienced in this work, to be known as the regional purchasing committees, with headquarters in Xew^ York, Chicago, and Atlanta, in touch with tlie regional directors of these three districts. 109 All purchases of locomotives, passenger, freight, and other cars, and steel rails vrill be made directly through the office of the director of purchases. Fuel. — In the New England territory fuel purchases will be made by a special committee appointed by the regional director, under the direction of the Washington office. In other sections, each railroad ■will be expected to handle its requirements, under the immediate di- rection of the respective regional purchasing committees, cither col- lectively with other companies, or separately, as may be directed by that committee. The details of all contracts already made and of all other contracts as made will be scrutinized and checked by the re- gional purchasing committees, which will act under the general direc- tion of the central committee. Crossfies and linnber. — Crossties and lumber which can be obtained along the lines of the respective roads will be negotiated for and pur- chased through the purchasing department of each road, under the supervision of the regional purchasing committees. Crossties needed by the various roads which can not be obtained on their own lines will be purchased through the Washington office. All other supplies needed for current operations will be purchased, for the time being, through the purchasing departments of the re- spective roads, but all contracts for periods of six months or longer must be approved by the regional committees before completion. Information as to the prices paid for all supplie's will be furnished monthly by all roads to the regional purchasing committees, so that the prices paid by each road for all articles may be carefully com- pared and checked, both as to prices, standards, qualities, and places of delivery. The regional purchasing committees will address themselves as soon as possible to consideration of the opportunities for standardiz- ing and consolidating purchases of every kind that may admit of such treatment, with a view to increasing efficiency and economy. The regional purchasing committees will submit to one another and to Washington, as information and for criticism, full statistics as to cost prices of materials used in railroad operations, and these prices will be carefully compared and checked. The names of the advisory committee in the Section of Finance, and of the advisory committee in the Section of Purchases, and the names of the three regional committees v>ill be announced in a few days. UNIVERSAL INTERLINE BILLING. March 19, 1918. Director General ]McAdoo to-da}^ issued an order establishing uni- versal interline billing between all railroads subject to Government 110 control. Tliis order also contemplates a simplified distribution of revenues, and tlie effect will be a reduction of expense and gi^eater convenience iii the waybilling and handling of traffic and also in the accounting department. Ordinaril}' freight in passing from one line to another is waybilled to the junction point and rewaybilled at the junction point. The division of the through rate often involves arbitraries, and is more or less complicated. The making of these divisions and the subsequent checking of them to exactness involves a great deal of labor and accounting. The interline waybill is issued at the point of origin and accom- panies the shipment to destination, no matter how many carriers are involved. This saves time in the movement of the traffic itself. It is also proposed to simplify the matter of divisions so that most of the accounting work which now attaches to the making of these divisions will be avoided. This is a reform which has been long under discussion by carriers, but which could not be established under independent control. CONSOLIDATIONS. April 9, 1918. Director General McAdoo has issued the following instructions to the Regional Directors : 1. Discontinue the separate city freight or passenger offices where the public may be adequately served at the depot. This applies particularly to the smaller cities. 2. Consolidate or group all city ticket offices, placing the union office in con- venient location where rental is reasonable, providing sufficient space to prop- erly accommodate the public. 3. Cancel all arrangements with tourist or other similar agencies for solicita- tions of passenger traffic or sale of tickets. 4. Discontinue all off-line traffic offices. 5. Employees released as result of above to be assigned to other duties to the extent possible. Some now employed in off-line offices will be needed by local line to strengthen its traffic forces in order to properly care for the additional work which will result from the above changes. The functions and services formerly performed by the off-line offices in pro- tecting the needs of the public will be incorporated in the offices of the initial lines. Separate off-line traffic offices were created by the various transportation in- terests on account of existing keen competition for passenger and freight traffic, and were primarily headquarters for soliciting agents who were stationed in all commercial districts for the purpose of protecting the interests of the carrier by whom thoy were employed. Now there is no competition, which eliminates need for solicitiition by the individual caniers. The iiulicy is one of efficiency with all possible retrenchment and econf>my consistent with protecting the best in- terests of the public. Ill The employees released fi'om their present duties as a result of this are to be assigned to other duties, as far as possible, with the same road. Some now- employed in ofE-line offices will be needed by local lines to strengthen other traffic forces to properly take care of the additional work eutailed upon the initial lines account of this change. In making this readjustment, it is intended to woi-k as little hardship as possible upon the employees concerned. Many of these men have been in the service of their respective lines for long periods, and their railroad insurance and pension rights will be protected. No community will be deprived of adequate sources of information and advice as to matters connected with passenger and freight service. It will be necessary for the lines directly serving each locality to see that their offices are manned and equipped to furnish the needed information and advice. This to include the issuance of through bills of lading, quotation of rates, passenger reports of cars en route, advice to prospective passengers, and all other necessary information heretofore furnished by the off-line offices. LAKE LINE SERVICE. April 18, 1918. Director General McAdoo to-day established a lake line service between Chicago and Milwaukee in order to relieve the car situation as much as possible. Cars that have been held up on western rail- roads by the congestion on central railroads will be immediately released with the opening of lake navigation and the loads moved east by the way of lake and railroad lines east of Buffalo, thereby releasing equipment to the western railroads for use in their ter- ritory and relieving the railroads in the central freight territory of the saving of power, fuel, and cars that can be devoted to other business. Shippers of heavy staple commodities from the east, such as sugar, coffee, and manufactured articles, will take advantage of this service as it will be of a steady and regular movement. There will be as- signed to this lake line service seven large modern, electric-lighted steamships, and it is intended to work day and night shifts at the terminal points so that the ships can be turned rapidly and afford the greatest possible relief to the railroads. It will be known as the Lehigh Valley Transportation Co. and wnll serve all eastern trunk lines over a common terminal at Buffalo. Two of the ships assigned were owned by the Lehigh Valley Rail- road, and the other five were chartered from the Great Lakes Transit Corporation. Additional ships will be added as the service requires. All rail rates will prevail in both directions, so that in case of con- gestion on the railroads the freight can be immediately diverted to the lake and given continuous movement to destination; the rates include marine insurance, and the service should be of great assistance to the shipping public. 112 B. & O. TRAINS INTO PENNSYLVANIA STATION. April 2-2, 1918. Director Genoral McAdoo to-day issued the following order effec- tive April 28, 12.01 a. m. : Baltimore & Ohio trains between Washington and Xcw York will be transferred and run into the Pennsylvania station at Thirty- fourth Street via the following route : Eun on the present tracks to Bound Brook, X. J., then switching over to the Lehigh Valley on that road to the Pennsylvania Eailroad at Xewark Junction, and from there over the Pennsylvania through the tubes to the Thirty-fourth Street station. This rerouting of the Baltimore & i)h\o trains will tend to utilize them to capacit,y, thereby assisting the Penns^dvania between Xew York and Washinglon and affording the public gi'eater facilities. STANDARD LOCOMOTIVES. April 30, 1918. Director General McAdoo, of the United States Railroad Admin- istration, announced to-day that he has just awarded contracts for immediate construction of 1,025 modern locomotives. Deliveries are to begin in July and continue monthly during the remainder of the year. The locomotives are of six standard types, one heavy and one light, one of each type, coveriug both freight and passenger service, and var3dng in weight from 290,000 pounds to 510,000 pounds. The order involves an expenditure of approximately $60,000,000. The engines will be allotted, u]>on completion, to the various railroad systems where they are most needed. The awarding of this contract marks the establishment by the Gov- ernment of tlie standard type of locomotives, specifications for which have been de\eloped and perfected by committees of experts, who for many weeks have devoted mucli time and study to the subject. The six standard types of locomotives, tAvo sizes of each class, are expected eventually to supersede the many miscellaneous types and varieties of locomotives now in service, embracing engines l)uilt ac- cording to 500 or more varying specifications. This is the first time that an}' real forward step has been taken looking to the Avide stand- ardization of locomotive engines. The contracts Averc awarded on terms much more favorable to the railroads than the bids originally submitted b}' the builders. The order was distributed app)'Oximately one-half to the American Locomotive Go. and the remainder to the Baldwin Locomotive Works. 113 ELIMINATION OF PASSENGER TRAINS. Mat 14, 1918. Director General McAdoo has approved the recommendation of Regional Director Aishton for a reduction in the mileage of trans- continental passenger trains starting from Chicago, aggregating 11.728,000 miles per annum, and it is proposed that the revised schedules shall take effect on June 2. This economy has been accomplished by abandoning duplicate service between Chicago and the Pacific coast cities and assigning to the short and direct routes to each city the fastest through service. Under this plan the Atchison, Topeka & Santa Fe will be the pre- ferred route to Los Angeles, Chicago & Xorth Western-Union Pa- cific-Southern Pacific to San Francisco, Burlington-Xorthern Pacific to Portland, and the Chicago, Milwaukee & St. Paul to Seattle. The fast trains will make the run in 72 hours to each city. There will be a secondary train carrying all classes of equipment scheduled in 78 hours. The other transcontinental roads will operate such service as may be necessary to accommodate their intermediate travel on reasonable schedules. On the same date the mail schedules will be adjusted so that there will be a parity of mail service between Chicago and each of the rival commercial centers on the Pacific coast. The fast mail trains will cover the distance between Chicago and Pacific coast terminals in 65 hours. The public will be adequately served under the new arrangement, although it is probable that more upper berths will be sold in the future than in the past. The passenger committee for the western district has now started working on the rearrangement of the schedules to the Southwest, where important economies can also be effected Avithout affecting public convenience. APPOINTMENT OF FEDERAL MANAGERS. May 21, 1918. In view of the direct responsibility for the operation of the rail- roads of the country placed upon Director General McAdoo by the act of CongTess and by the proclamations of the President, he has been unable to escape the conclusion that it will be advisable to place in direct cliarge of each property for operating purposes a represent- ative to be known as the Federal manager. Avho will report to the Regional Director. As far as practicable, this Federal manager will be chosen from the operating officers of the particular property, wdio are therefore entirely familiar with its employees and with its con- 105889°— 19 8 114 ditions. Except so far as may be necessary to meet the emergency conditions which compel the Government to take control of the rail- roads, the Federal manager of each railroad will endeavor to avail himself to the fullest extent of the advantages incident to the opera- tion of the particular railroad as a unit and the preservation of its identity. This is believed to be of essential importance, not only to secure the best results during the period of Government control, but also to give the greatest degree of reassurance to the officers and em- ployees that the railroad careers upon which they have entered will not be narrowed, but, if anything, will be broadened, and to give the greatest possible reassurance to the stockholders that their just interests in the properties will be respected and that nothing will be needlessly done to have even the appearance of impairing their just rights. "WTiile in this way the responsibility for the operation of the property will be directly to the Regional Directors and not to the boards of directors, it is the purpose of the Director General to ac- cord to the boards of directors and their representatives the fullest opportunity^ to keep advised as to the operation and improvement of the properties and to maintain with the Director General and the Regional Directors the fullest interchange of views as to what is in the best interest of the Government and of the stockholders. In the development of this policy the Regional Directors and also the Federal managers will be required to sever their official relations with the particular companies and to become exclusive representatives of the United States Railroad Administration. The first moves in the inauguration of this policy will be through the creation of two new regions to be known as the "Allegheny Region " and the " Pocahontas Region." The Allegheny Region will consist, broadly, of the Pennsylvania lines east of and including Pittsburgh and Erie, Baltimore & Ohio, east of Pittsburgh and Ohio River including Pittsburgh terminals, Bessemer & Lake Erie Railroad, Cumberland Valley Railroad, Cen- tral Railroad of New Jersey, Coal & Coke Railroad, Philadelphia & Reading Railway, Western Maryland Railway, Cumberland & Penn- sylvania, and Pittsburgh & Lake Erie. This region will be placed in charge of Mr. C. H. Markham as Regional Director (who has resigned his connections with the Illinois Central and other companies), who will have offices in Philadelphia. The Pocahontas Region will consist of the Chesapeake & Ohio Rail- way east of Columbus, Cincinnati, and Louisville, the Norfolk & Western Railway, and the Virginian Railway > including the terminals of all lines at Hampton Roads. With the exception of the Allegheny and Pocahontas Regions, the Eastern Region will remain as originally defined with Mr. A. H. Smith as Regional Director, and district di- 115 rectors under Regional Director Smith will be appointed for New England and for that portion of the Eastern Region west of Pittsburgh and Ohio River and south of the Erie main line. The selection of the Regional Directors for the Pocahontas Region and for the Southern Region, succeeding Mr. Markham, as well as of the two new district directors under Regional Director Smith will be announced later. The same policy wil be applied from time to time as rapidly as may be convenient in other parts of the country, always with the greatest possible regard for all the interests affected and with a view to pre- serving intact, as far as reasonably practicable, the operating organi- zations of the companies. ONE-CENT-A-MILE RATE FOR SOLDIERS. May 25, 1918. Director General McAdoo, realizing that the payment of the full railroad fare means a serious hardship to our soldiers and sailors who desire to visit their homes before going overseas, has ordered that as soon as necessary details can be completed soldiers and sailors of the United States forces, when furloughed and traveling at their own expense, will be granted a rate of approximately 1 cent per mile. This fare will be available on delivery to ticket agents of certificates signed by commanding officers. Such certificates of standard form will be prepared and distributed with the utmost promptness. RATE INCREASE. Mat 27, 1918. Director General McAoo sent the following telegram to the presi- dents of all State railroad commissions: Apparent increases in operating expenses aggregating $830,000,000 to $960,000,000 for the calendar j-ear 1918 as compared with the calendar year 1917, and consisting principally of increases in wages and cost of coal, fuel oil, and other materials and supplies, leave uo escape from the conclusion that the public interest requires immediate and substantial increases in the rates for practically all services, passenger and freight, now performed by the railroads under Federal control, and therefore in effect performed by the United States Government itself, and that there is no other reasonable way to defray the ex- penses of Federal control and operation, since it is clear that those additional burdens should not be forced upon the Federal Treasury at this time, when it is already so heavily taxed by the needs of our own Government for war purposes and the essential demands for credit of the gallant nations associated with us in this great struggle for liberty. In these circumstances, it seems clear that the duty which rests upon me by virtue of the act of Congress of March 21, 1918, and by virtue of the President's proclamation, should be performed by the in- itiation without delay of increased rates to meet the situation. In dealing with this supremely important subject, I have given much thought to the question as to the practical way of availing myself of the knowledge and 116 cooperation whicli ;it all times have been so cordially put at mj' disposal by the State commissions. The act of Congress gives me no opportunity to share with the State commissions the responsibility whicli rests upon the United States Railroad Administration for the financial residts to the United States Govern- ment of the operation of the railroads. In fact, the Government of the United States has assumed control of the railroads and the undivided responsibility for their operation, and that entire responsibility has been placed upon me. I have als4> felt that the exigencies of the situation are so serious as not to admit of postponement of action until full opportunity couUl be extended to the commis- sion in all the States to discuss the important problems involved and to advise me, in advance of official action, as to liow my responsibility could best be dis- charged. In these circumstances, it has seemed clear that the responsibility should be promptly met in the manner contemplated by the act of Congress, and then, in the inevitable readjustments which always must come in a matter of such far- reaching character, to obtain the advice and suggestions of the State commissions and to take advantage of their views in order that in the final consideration of the subject by the Interstate Commerce Commission, that body may have the benefit of the most intelligent and equitable sifggestions as to the readjustments needed to accomplish the largest measure of relative justice while at the same time obtaining the additional operating revenues which the United States Gov- ernment must liave in order to discharge the responsibilities which it has as- sumed for railroad operation. Acting upon this view, I am initiating substantial increases in practically all rates, passenger and freight, and am arranging to have delivered to you at once a copy of the announcement on this subject. I earnestly hope that the procedure thus adopted, and which is unavoidal>le, will have your support, and that you will give the Government your full cooperation in perfecting the rates thus initiated. I also bespeak your patriotic cooperation in getting the public to sup- port in a patriotic spirit and as a war measure these substantial rate increases which are the outgrowth of war conditions and which in iirinciple and in sub- stance are indispensable to enable the Federal Government to discharge the transportation functions which are essential to the successful conduct of the war. W. G. McAdoo, Director Goicral of Railroads. EXPRESS COMPANIES. Ju>K 22, 1918. The express contract Ijetween Director General McAdoo and the four principal express companies (Adams, American, Wells Fargo, and Southern), the basis of which -was announced by the Director General on May 28, was signed by representatives of the express companies yesterday and by Walker D. Hines, Acting Director Gen- eral, to-day. The complete terms of the contract were connnunicated to the Director General, who is away from the city obtaining a brief rest, and received his personal approval. The contract provides for the carrying on of the express business for all of the railroads imder Federal control, and the new express company now established will be the Director General's agent for. carrying on the express business. As announced on ^May 28, the char- 117 acter of the service and of the rates will be under the Director Gen- eral's control and subject to hiitiation by him. The contract will re- main in force during the period of Federal control, unless previously abrogated. The contract provides that it can be canceled by either side upon six months" notice after being in effect for four years. SHORT-LINE RAILROADS. June 29, 1918. Under the act of March 21, 1918, it becomes necessary for the United States Railroad Administration, prior to July 1, 1918, to ex- ercise the responsibility, created by section 11 of that act, of deter- mining what railroads or parts of railroads it is not needful or de- sirable shall continue under Federal control. So far as it has been practicable, in such a complicated matter, to develop the facts up to the present time, it has become apparent that there are large numbers of the sliorter railroads whose Federal control is not needful or desirable. The Eailroad Administration has therefore provided that all such railroads be relinquished, except in cases where it has already been ascertained that it is needful and desirable that such railroads shall be under Federal control. In taking this action the Eailroad Administration is mindful of the paramount importance of preserving unimpaired the local public service performed by the railroads which may thus be relinquished and is al^o solicitous that no injustice shall be done to the owners of such railroads. It may be that the creation of Federal control over railroad systems in general will tend to change unfavorably the situ- ation of many of these smaller railroads, unless special care shall be taken to avoid such unfavorable results, with consequences detri- mental both to the local public service and to the just interests of the railroad owners. To avoid these consequences and to preserve in every reasonable respect a status for the railroads so relinquished as favorable as that which they enjoyed during the three-year test period (the three years ended June 30, 1917), great care will be taken to see that the railroads so relinquished are given fair divisions of joint rates, are insured a reasonable car supply — circumstances considered — and are protected against any undue disturbance in the routing of traffic. In order to make sure that a continuing study and supervision shall be provided for the carrying out of the policy thus outlined, there will be created at once in the Railroad Administration's Divi- sion of Public Service and Accounting a Short Line Railroad Sec- tion, the manager of which will be charged with the special duty of 118 ascertaining what is necessary in order to give as to these matters reasonable protection to the railroads relinquished. It may be that instances will appear where Federal control of rail- roads now relinquished is in fact needful or desirable. In such cases there will be no hesitation in taking the action necessary to put such railroads under Federal control. In general, it is the definite policy of the Railroad Administration to see that all short-line railroads receive fair and considerate treat- ment. I approve the above policy and announcement. (Signed) Woodrow Wilsox. UNIVERSAL MILEAGE. JuLT 3, 1918. Director General McAdoo to-day authorized the following an- nouncement : There will be placed on sale, on or about August 1, a universal mileage scrip at the basic rate of 3 cents per mile. Each coupon of the ticket will represent the value of 3 cents and can be used for the payment of sleeping and dining car charges and transportation of excess baggage, as well as transportation charges on all trains on railroads under Government control. The advantages of this simple form of ticket are obvious and the change is expected to relieve the pressure on ticket agencies at busy centers. The war tax will be collected by conductors at the time of the pre- sentation of the mileage scrip. INLAND WATERWAYS. July 11, 1918. The much-discussed question of developing a system of transporta- tion on the inland waterways provided by the Mississippi and Black Warrior Rivers has been settled by Director General McAdoo through the appointment of M. J. Sanders, of New Orleans, as " Federal manager of the Mississippi and Warrior Waterways." The Director General has received full reports on this subject from the Committee on Inland Watenvays, from the western and south- em regional directors, and from Director Prouty and Interstate Com- merce Commissioner Meyer, all of whom have investigated the mat- ter at the Director GeneraFs request. Mr. Sanders, the newly-appointed Federal manager, will have gen- eral direction of development of the necessary facilities and the con- struction of requisite barges, tugs, etc., that will be used on the Mis- sissippi River south of St. Louis and on the Black Warrior River route between the Birmingham district in North Alabama and Mo- 119 bile and Xew Orleans; the latter city being reached via the Black Warrior River, Mobile Baj^, the Gulf of Mexico and Lakes Borgne or Ponchartrain with their connecting canals. Mr. Sanders has been manager of the Leyland Steamship Lines for the ports of New Orleans, Mobile, and Pensacola for the last 30 years. This steamship service is the most important traversing the Gulf of Mexico. It includes some of the largest freight steamers iu the Gulf trade, with as many as 100 sailings annually from the ports named. Mr. Sanders has had extensive business connections with all the railroads serving the Gulf ports as well as with the existing river transportation service. He was president for several years of the City Bank & Trust Co. of Xew Orleans, and president of the Mobile Liners (Inc.). He is director of the Lake Borgne Canal Co., of the New Orleans Ship Wright Co., and of the Louisiana Southern Rail- way. He was also president for several years of the New Orleans Progressive Union, now the Association of Commerce, and has just finished a two-year term as president of the New Orleans Board of Trade, of which he is still a director. In March last he became a member of the Inland Waterways Com- mittee above referred to. This connnittee was appointed by the Di- rector General to " make a prompt investigation and report as soon as practicable a definite plan describing the extent and the manner in which additional use may be made of the internal waterways for the economical and expeditious movement of traffic of the country, so as to relieve or supplement the railways under existing war con- ditions." Mr. Sanders strongly believes that the time has come when the enormous expenditure of the Government in the development and improvem.ent of the Mississippi and the Black Warrior Rivers should be made to yield some return through the application of progressive methods, modernized facilities, equitable freight rates, and fair dif- ferentials, and that the pressure upon the railway facilities of the Nation will be sensibly reduced by the adoption of such a policy. He will have the opportunity in the position to which he has been ap- pointed to make a thoroughgoing test of the possibilities of these waterwavs under favorable conditions. FIRE PROTECTION. July 16, 1918. The United States Railroad Administration announced to-day the organization of a new section, imder the supervision of the Director of Finance and Purchases, which shall be known as the Section of Insurance and Fire Protection. 120 As heretofore announced, it will be the general policy of the Eail- roacl Administration to do away with the fire-insurance policies here- tofore carried, and to haA^e the Government itself stand directly re- sponsible to the railroads for fire losses of property in Government possession. This section will therefore deal prunarily with the prevention of fibres through rigid and intelligent inspection, and by-insisting upon the observance of rules and regulations intended to prevent the un- necessary destruction of property by fire. The Insurance Section will have the benefit of the assistance of an advisory committee of men experienced and skilled in the business of fire insurance, whose names will hereafter be announced. Mr. Charles N. Eambo, of Philadelphia, superintendent and secretary of the Mutual Fire, Marine & Inland Insurance Co., has been selected as manager of the section and will resign from his present position. Mr. Rambo brings to his work 20 years of experience in the insur- ance business, and for the past 15 years has devoted his energies to the Mutual Fire, Marine & Inland Insurance Co., wdiich was organ- ized by and in the interest of the railroad companies for the purpose of mutual insurance and of reducing fire-insurance costs and premiums. The Insurance Section Avill provide a force of skilled inspectors in each region whose duty it will be to see that the rules and regula- tions intended to reduce fire losses are rigidh^ observed. The insur- ance inspectors now employed b}^ the various railroads will be util- ized as far as desirable. This section will also have general charge of the adjustment of fire losses. EXPRESS FRANKS. July 29, 1918. Under instructions from Director General McAdoo the American Kailway Express Co., the new company'' established under the con- ti-act betw^een the Director General and the four principal express companies of the country, has canceled all express franks previously in use and adopted the policy of issuing no new franks. In the past free service was gi^'en by the express companies to a large number of people, not only express officers and employees, but also the officers of railroad companies and others. As a result of this practice a great many express franks were in existence and a large quantity of goods was carried free of charge. After careful consideration, the Director General decided that it was proper and Avise to eliminate this free service entireh^, and as a result all matter now carried by express is paid for. 121 PASSENGER SERVICE. STATEMENT TO THE PUBLIC. Washington, D. C, August 20, 1018. Complaints have reached me from time to time of overcrowded trains and unsatisfactory conditions prevailing in some sections of the country in passenger-train service. I feel certain that there are grounds for some of these complaints, but I am sure the public will be interested to know that the reasons are twofold : First, the great number of troops now being handled over the various railroads between the homes and the cantonments, between the different cantonments and then to the seaboard, is making ex- traordinary demands upon the passenger-car and sleeping-car equip- ment of the country. This has caused a scarcity of day coaches and sleeping cars which it is impossible to remedy immediately. Secondly, the increased demands upon track and terminal facili- ties for the transportation of the tremendous amounts of coal, food supplies, raw materials, and other things required for military and naval operations, as well as for the support of the civil population of the country, force the largest possible curtailment of passenger-train service. The movements of troops and war materials are, of course, of paramount importance and must be given at all times the right of way. It was hoped that the increase in passenger rates recently made would have the wholesome effect of reducing unnecessary passenger traffic throughout the country. The smaller the number of passen- o-ers who travel, the greater the number of locomotives and cars and the larger the amount of track and terminal facilities that will be freed for essential troop and war-material movements. Engineers, firemen, and other skilled laborers will also be released for service on troop and necessary freight trains. Among the many patriotic duties of the American public at this time is the duty to refrain from traveling unnecessarily. Every man, woman, and child who can avoid using passenger trains at this time should do so. I earnestly hope that they will do so. Xot only will they liberate essential transportation facilities which are necessary for war purposes, but they will save money which they can invest in Liberty Bonds and thereby help themselves as well as their country ; and the fewer who travel, the more ample the passenger-train serv- ice will be. I may add that consistently with the paramoimt demands of the war. ever}' possible effort is being made by the Railroad Administra- tion to supply the largest possible amount of comfortable and prompt passenger-train service. W. G. McAdoo, Director General of Railroads. 122 USE OF PENNSYLVANIA RAILROAD TERMINALS BY LEHIGH VALLEY RAILROAD. September 9, 1918. Director General McAdoo announced to-day that, effective Septem- ber 15, the Xew York and Jersey City terminals of the Pennsylvania Railroad will be used by the Lehigh Valley Eailroad. The present use of the Communipaw terminal of the Central Railroad of New Jersey by Lehigh Valley passenger trains will be discontinued the same date. It is proposed to send Lehigh Valley trains Nos. 5 and 6, 7 and 8, 9 and 10, 29 and 30. and 11 and 28 into the Pennsylvania station at New York, while the remainder of the Lehigh Valley passenger serv- ice, consisting of trains Nos. 1, 27, 33, 40, 22, and 34, will use the Jer- sey City terminal of the Pennsylvania. Passengers from downtown New York for trains leaving the Penn- sylvania uptown station will use the Hudson & Manhattan Railroad, trains connecting at Manhattan Transfer. Hudson & Manhattan trains and Pennsylvania ferry service also will be used by passengers for the Lehigh Valley trains leaving from the Pemisylvania's Jersey City station. No excursion business of the Lehigh Vallej^ will be handled out of the Pennsylvania stations at New York or Jersey City, and the Lehigh Valley will handle its troop trains at Communipaw. GRAIN MOVEMENT. September 16, 1918. Director General McAdoo to-day authorized the following state- ment : The conditions existing in the grain trade this season have brought about an unusual situation, due principal!}^ to two factors, namely, an abundant wheat crop and a stabilized price Avhich removes any incen- tive to hold wheat back on the farms for price fluctuations. As a result of this situation the grain has been shipped as f a^t as har- vested, and as a matter of fact nearly 100,000 more cars of gi*ain have been handled by the railroads to date this season than in the same period last year. Naturally this tremendous flow of grain has over- taxed the storage facilities. At the present time not only are the seaboard elevators filled to capacity awaiting export, but the elevators at the primary markets are practically unable to furnish an}^ more storage, and should the gi'ain be allowed to continue to flow without control the only possible result would be the use of cars for storage, resulting not only in congestion of tracks and terminals but in put- ting the cars out of business for the other transportation needs of the country. 123 To meet this situation the Raih^oad Administration, in conjunction with the Food Administration, has arranged to control grain move- ments throughout the country and to transport all grain under what is known as the " permit "" sj-stem in charge of committees m the dif- ferent grain zones, which means that shippers will be furnished with cars and permitted to ship to the capacity of all the markets to take care of and promptly unload the grain. This not only will prevent congestion of the tracks and tying up of equipment but will result in a regular movement of the grain traffic and the best distribution of equipment, with the effect of the greatest efficiency, which, of course, results directly to the greatest benefit to the grain producer and the least disturbance of his business arrangements. It is interesting to know that already 75 per cent of the winter wheat has moved from the farms, while the spring wheat and oats are just beginning to move, and of the total wheat crop it is estimated that about 43 per cent had already reached the markets, which is far in excess of the usual amount at this time of the year. COAL MOVEMENT. September 27, 1918. Director General McAdoo to-day authorized the following: At the present time the rules under which coal mines are rated and the cars distributed vary considerably on different railroads. Re- sult is that it has been almost impossible to gauge car supply for coal loading throughout the country unless one is fully conversant with the details of the individual railroad's rules. The attached circular outlines uniform rules for rating for car distribution pur- poses for coal mines other than anthracite, loading coal at mine tip- ples, and the rules governing the distribution of cars to coal-mine tipples other than anthracite. The rules were issued to-day to all coal-loading railroads. Under the new rules mines will be supplied each month with cars on the basis of shipping ability as demonstrated by their performance for the previous month. Each road will work on the same rule and the result will be that if the percentage rate of distribution varies it will be known whether or not a road is short of cars because its figures will be compiled on the same basis as every other road's. These rules ha^•e been in the course of preparation for the past two months, during which time the Railroad Administration has ob- tained the views of representative transportation men of important bituminous coid-loading roads as well as the A'iews of the Fuel Administration, the National Coal Association, and individual operators. 124 MILITARY MEALS. October 5, 1918. Director General McAdoo to-day authorized the following: The United States Railroad Administration and the AVar and Navy Departments have recently agreed upon an arrangement for furnish- ing meals in dining cars and eating stations to officers and enlisted men Avhich is proving very popular with men in the service. The War and Xavy Departments Lave raised the meal allowance to Y5 cents. In some instances the former allowance was 50 cents and in others 60 cents. Orders have been issued that a substantial and appetizing table d'hote meal be furnished for this sum. The weight of each article on the menu will equal or exceed the Army and Navy rations. The arrangement will apply to officers and men traveling at their own expense as well as to those Avho are traveling on Government orders, and includes inducted men on their way to enter the service. Typical menus for breakfast, luncheon, and dinner are shown below : Break fast. — Fruit or cereal, liam or bacon, egg8, potatoes, l»rt>aa and butter, tea, coffee, or milk. Luncheon. — Soup, relish, roast, stew, or boiled meat, two vegetables (potatoes and oue other), bread ami butter, tea, coffee, or milk, dessert. Dinner. — Soup, relish, roast, stew, or boiled meat, two vegetables (potatoes and one other), bread and butter, tea, coffee, or milk, dessert. CONTACT WITH PUBLIC. October 21, 1018. Director General McAdoo sent the following letter to each one of tlie Regional Directors: To the end that its patrons may fully understand the purpose, plans, and general policy of the United States Railroad Administration, and that all em- ployees may appreciate their part in taking care of the needs of the public, it is very desirable that the Regional Directors shall arrange occasionally for direct contact between the officers of the railroad and the public served by its line. This contact shoidd not only occur at the larger cities which were formerly regarded as highly competitive points but also at those points which are local to and seived only by the one line of railroad. Without limiting your discretion it is suggested that the object may be suc- cessfully accomplished by once in a while arranging trip of oi)crallng, account- ing, and traflic ofhcors together, who shall visit city officials, boards of trade, chambers of commerce, and important industries of each city or town for tlie purpose of informing the public why it was necessary in order to meet war necessity to do things in a certain way, also explain the advantages which have accrued and will accrue in the future by tlie improvements in transportation conditions worked out by the Railroad Administration and which are bound to be continued pernuuiently because of their efficiency, economy, and expedition in the handling of traffic. An opportunity will thus also be afforded for advising tlie public as to the organization in each region for the conduct of business and direct them to the 125 proiXM" ollice with \\iiicli to takt' ii]i tl^^ various matters of rates, claims, car supply, service, or other needs avIucIi may from time to time arise, impressing them with the fact that the local officers are prepared and anxious to handle all matters of mutual interest between the communities and railroads, and that it is not necessary to appeal to Washinirtoii in the transaction of the ordinary business of the railroad. The local officers should l>o impressed with the importance of givinj? every consideration and attention to inatters tliat may be brouglit before them, and that all suggestions should have careful consideration, and there is no doubt that the stimulation of the local railroad agents and employees, as well as the satisfaction of the public, will amply prove the wisdom of this procedure. SHORT-LINE CONTRACT. October 25, 1918. Director General McAdoo to-da}' approved and promulgated the contract for the short-lme railroads. This contract follows the general principles announced by the President at the time he vetoed the short-line resolution. It is be- lieved that this will be satisfactor}- to short-line owners and will en- able them to continue in operation as successfully as before Federal control. It provides that until it is necessary for the Director General to ex- ercise control over the short-line roads for war purposes, they are to remain under the management and direction of their owners and are entitled to all the revenues and responsible for all expenses and obli- gations ; that the rates, fares, and charges for transportation services performed jointly by the short lines and the trunk lines shall be divided fairly between the Director General and the company. The arbitraries and percentages of joint rates received by the short lines on January 1. 1918, shall not be reduced, and when joint rates are in- creased, the short lines shall receive their proportion of such increased rate in the same ratio; that the short lines are to receive an equitable allotment of cars (and where feasible motive power), and for the equipment furnished by the Director General they shall pay same rental as the Director General pays for their equipment used by him, and an allowance of two days' free time on cars for loading and un- loading is made on lines of road of 100 miles in length or less. Such arrangement shall be made for the routing of competitive traffic over the short line as will guarantee to it the same amount of competitive traffic as was enjoyed for the average of the three years ending December 31, 1917, and the short line as far as practicable is to have the benefit of the purchasing agencies of the Director Gen- eral in the purchase of material and supplies, and at the prices paid by him; and have its repairs made at the shops of its connecting lines upon the same terms as was enjoj'ed before Federal control. 126 There shall be no discrimination against the company in the mat- ter of publishing tariffs and routing. Short lines will be treated in the same manner as the trunk lines, except that nothing in the con- tract shall be construed to require the establishment of joint rates where joint rates were not in effect at the beginning of Federal control. The order of relinquishment issued in June is to be set aside, and the road restored to Federal control on the basis of the contract, and the right is given to the Director General to take over the operation of the road if in his opinion a war necessity' arises. The Director General will formulate definite rules and regula- tions governing transportation which shall apply to the short lines without discrimination. EXPRESS CONTRACT. October 26, 1918. The Interstate Commerce Commission in its decision announced to-day with reference to proposed increase in express rates indicates that the plan proposed constitutes a justifiable method of dealing with the necessities of the situation unless the Director General should re- duce the percentage basis of compensation which the Express Com- ]3any is to pay the Director General or unless he should make what is in effect a similar change in the contract by providing that only half of the proposed increase in rates shall be made and that the entire increase thus made shall inure to the benefit of the Express Com- pany. These alternatives had already been carefully considered by the Director General and the conclusion was reached that neither alter- native was justifiable in the circumstances. The contract between the Director General and the Express Com- pany provides that the Express Company shall pay to the Govern- ment for the express privileges accorded to it by the Director Gen- eral 50.25 per cent of the gross revenues from the express business. This percentage represents the average which has been paid for 10 years by the express companies to the railroads, and it is fair to as- sume that this percentage represents what is required for the per- formance of that part of the total service which has been performed by the railroads in the past. Moreover, the heavy increases in operat- ing costs on the railroads have necessitated substantial increases in freight and passenger rates, averaging probably 25 per cent or more, and averaging in the case of many passenger rates as much as 50 per cent. In such circumstances it is clearly unwise to make an actual reduction in the basis of the Government's compensation for the ex- press privileges accorded to the Express Company for services on passenger trains. By the preservation of the present established 127 basis of compensation for the express privileges the increase in reve- nue of the Eaih-oad Administration from the carrymg of express busi- ness on passenger trains will be no greater than the increased revenue paid for transportation of passengers and their baggage and such in- crease from the express business is just as appropriate and necessary as the increase from the passenger business. Another consideration of first importance is that the relatively low rates for transportation of express matter have had the effect of trans- ferring to passenger trains the transportation, as express, of many articles and commodities which ought normally to go by freight. This tendency has been accentuated by the substantial increases re- cently made in freight rates. The result of this undue transfer of freight matter to passenger trains has been to congest and delay the passenger train service. The proposed increase in express rates will probably fall short of establishing a proper relation between express rates and freight rates and certainly on this account no less increase in express rates than is proposed would be advisable. The entire amount of this increase which will inure to the express company is to be used for making necessary increases in wages of ex- press employees. The portion of the increase which will inure to the Railroad Administration will be no more than is needed to pro- vide for heavy increases in operating cost fairly chargeable to the express business. UNIFORM RATES. October 27. 1918. Director General McAdoo has submitted to the Interstate Com- merce Commission and State railroad commissions a system of class rat€s which, if adopted, will do away with most of the discrimina- tions and inequalities that now exist and will bring about a greater degree of uniformity in those sections of the country where condi- tions of transportation are practically identical. These mileage schedules of class rates, which are purely tenative, are offered for adoption in the territory east of the Mississippi River and south of the Ohio River and of the main line of the Xorfolk &> Western Railroad; also in all of the States west of the Mississippi River, including Wisconsin and Minnesota. In the West the country has been divided into zones, within which for both intrastate and interstate application, the following scales are suggested : In Iowa, Wisconsin, Minnesota, and ^Missouri north of the Missouri River the 75 per cent scale ; in North Dakota, South Dakota, Nebraska, Kansas, Oklahoma, Arkansas, Missouri south of the Missouri River, Louisiana west of the Mississippi River, and Texas common point territory the 100 per cent scale. This same scale is also propo'^ed for application intrastate and interstate be- tween points in the States of California, Oregon, and Washington. 128 In Arizona, New Mexico, Colorado, Xevada, Utah, Wyoming, Idaho, Montana, and Texas differential territory the 120 per cent scale is suggested. In this connection it is interesting to note that the 100 per cent scale, which is now proposed for nse in several of the gxanger States, is ex- actly the same, except for its extension to 1,000 miles, as that recently agreed upon for nse in the State of Oklahoma at a conference be- tween Director General McAdoo and the railroad commissioners of that State to whom it was entirely satisfactory. In the southeastern territory one of two scales is proposed for adoption, the first being the same as offered for application in 100 per cent Avestern territory to be governed by the western classification; the other a special scale designed to be used in connection with the southern classification. It is hoped the people of the Southeast may find it advantageous to adopt the western scale and western classifi- cation which would prove not only a great convenience to the ship- pino- public but also a long step toward a uniform classification which is desired. It is not the idea of Director General McAdoo that these scales should apply interterritorially ; for instance, between two points one of which is in 75 per cent and the other in 100 per cent territory. The only exception to this is, it is proposed to apply interterritorially within the boundaries of the State of Texas the scale for 100 per cent territory in conjunction with the scale of differential rates pre- scribed by the Interstate Commerce Commission in the Shreveport Case for application in Texas differential territory without, however, the increase of 25 per cent provided for in General Order No. 28. It is believed the overhead or specific rates, which will be continued in effect, will amply protect interterritorial traffic, as well as the few interstate movements beyond the maximum distance for which the proposed schedules are fixed within the various zones. These scales are being sent to the various State commissions and to connnercial organizations in the States affected inviting their criticism and suggestions. The advice of the Interstate Commxcrce Connnission is also being sought under the eighth section of the Fed- eral control act, and presuuuibly hearings will be held by that body to the end that the widest possible investigation as to their propriety and reasonableness may be made. In addition to this they are being sent to the various traffic committees throughout the territory pre- scribed, that they may analyze them and offer constructive criticisms and suggestions as to their possible use. Director General McAdoo is not wedded to any theory or any schedule. His purpose is to bring on a full and intelligent discus- sion of the subject to the end that what is right and in the public interest may prevail. 129 LOW RATES FOR DISCHARGED SOLDIERS AND SAILORS. November 19, 1918. Because of the law allowing 3| cents per mile for transportation and sustenance for soldiers and in order to make certain that soldiers will not be required to pay any part of the expense of returning to their homes after being discharged from the Army, Director General McAdoo to-day authorized a reduction of 33 J per cent in the current coach fare for this purpose, making the rate to them approximately 2 cents per mile. It is estimated that the total reduction of railroad revenue resulting from this arrangement Avill be approximately $12,000,000. If the dis- charged soldiers require sleeping-car accommodations, they will pay the additional charge of approximately one-half cent per mile in tourist cars, the type of sleeping car which will be generally used. This will leave them an adequate amount to pay for their meals while going home. It will be necessary to file with the Interstate Commerce Commis- sion special tariffs authorizing this rate, which will be done promptly, and the arrangement will be placed in effect within the next few days. It Avill be applicable until further notice to all discharged soldiers as well as to the 132,000 men stationed at the 14 camps throughout the country and who are to be immediately demobilized by the War De- partment and honorably discharged. NEW EXPRESS RATES. November 20, 1918. A general order initiating increased express rates was issued by Director General McAdoo to-day effective January 1, 1919. Tlie essential features of the order provide that in the territory north of the Ohio and Potomac Rivers, and east of the Mississippi River, the increase in express merchandise rates range from 16 to 17 cents per hundred 'pounds regardless of the distance hauled in that terri- tory. The increase in the balance of the United States will range from 10 to 12 cents per hundred pounds on merchandise. The increase on food products will be about three-quarters of the increase on merchandise shipped by express. The Director General submitted this plan for increased express rates to the Interstate Commerce Commission for its advice. He in- dicated to the commission that it was necessary to raise approxi- mately $24,000,000 additional revenue, which under the contract would go practically half to the railroad revenue and half to the ex- press revenue, and inquired Avhether the plan proposed would yield 105889°— 19 9 130 approximately that amount, and if so whether the plan was proper. The commission after a public hearing announced its conclusion that, if the amount of increased revenue was needed, the plan proposed was proper and preferable to any other method that had been suggested. The commission pointed out that under this plan the greater increase in rates would be applied in the eastern territory, which is the terri- tory " of lowest rates of the greatest cost of operation and greatest increase in those costs," and stated that while the plan would be a departure from the original zone relationship established by the com- mission, that departure appeared under the circumstances now pre- sented to the commission to be justified. The commission raised for the Director General's consideration the question whether the increase in rates could be obviated by a re- duction in the amount which the Express Company is required to pay the Railroad Administration for the express privilege, but, as the Director General has heretofore announced, such change in the contract is not practicable in view of the relative cost to the Eail- road Administration of handling the express business and in view of the heavy increase in the operating costs attributable to the rail- road handling of that business. The fact that the eastern territory is the region of greatest cost of operation and of greatest increase in such cost is due to the fact that in that region there is the greatest percentage of short-liaul traffic on which relatively the terminal and other costs are greatest. Another important advantage in increasing the rates in the eastern territory to a greater extent than other parts of the country is that it will have a tendency to restore the proper balance between express and freight rates, which has been disturbed in recent years by the greater increase in freight rates that have been granted in that terri- tory than in other parts of the country, which has resulted in the transfer from freight to express transportation of much traffic which ought to move by freight. This eastern territory has been swamped with express traffic for the past two years, a great deal of it having been diverted from the regular freight trains, causing congestion of tenninals, overcrowding of passenger trains, and producing a volume of traffic which pre- vented giving good express service on shipments which were usually handled in that way. It is expected the increased express rates will have the effect of transferring considerable of the short-haul business to motor trucks and back to the freight service, where it really should be handled. It is also anticipated that another result will be the transferring of the handling of some of the smaller packages to the parcel post. It will increase the rates in some of the Middle Western States, where the express rates have been unduly low; in fact, in some cases where 131 they have been lower than the freight rates and considerably lower ihan the express rates in surrounding States which had adopted the Interstate Commerce Commission basis of rates made for the express. The Express Company increased the wages of their employees to the extent of about $10,000,000 beginning July 1, which used up approximately the increase of 10 per cent in express rates effective July 15. It soon became evident that many express employees were still underpaid and the question of their wages is now being pre- sented to the Board of Eailroad Wages and Working Conditions, and it is expected that the further increased wages will practically consume all of the increased revenue which will come to the Express Company after January 1 under this order. SHOP HOURS. November 22, 1918. The emergenc}^ under which railroad employees in locomotive and car repair shops patriotically worked long hours during the war period, having in some degree passed, Director General McAdoo to- day issued directions under which the locomotive and car shop hours as far as practicable, will be reduced to nine hours per day effective November 25, and to eight hours per day effective December 9, The Director General sent the following telegram to all Eegional Directors : Last spring when the raih-oads were still struggling with congestion traffic and weather conditions were very severe, the different mechanical organizations responded in a most gratifying way to the request that the men work a greater number of hours in the shops tlirougliout tlie country than they had been ac- customed to, or than some of their agreements with the railroads provided, in order to repair locomotives and cars for the prompt transportation of munitions of war and for food and other supplies for our Army and Navy abroad and the allies. It is now possible, in view of the signing of the armistice, to anticipate an early return to normal conditions, and directions liave been issued that wher- ever practicable the locomotive and car shop hours shall be reduced on November 25 to 9 hours per day where greater number is now being worked and to basis of 8 hours per day on December 9. Tlie Director General desires to express his deep appreciation of the patriotic response of the mechanical workmen on all railroads and his gratification that it is no longer necessary to call for number of hours of service heretofore required. W. G. McAdoo, Director General of Railroads. ELIMINATION OF EXTRA PULLMAN RATE. November 26, 1918. Director General McAdoo to-day authorized the following: Effective December 1, the additional passage charge of 16| per cent of the normal one-way fare now required from passengers travel- ing in standard sleeping cars and parlor cars, and 8^ per cent of the normal one-way fare required from passengers traveling in tourist sleeping cars will be abolished. This means a reduction of one-half cent per mile in the fare of passengers nsing sleeping or parlor cars, and one-fourth cent a mile in the fare of those using tourist sleeping cars. The charge in question has served a useful purpose in conserving sleeping car equipment. LOW-PRICED MEALS FOR DISCHARGED SOLDIERS AND SAILORS. November 30, 1018. Instructions have been issued by Director General McAdoo to fur- nish discharged soldiers and sailors, traveling to their points of en- listment, with so-called military meals at the special rate of 75 cents as granted to men in the service under an arrangement made with the several military departments sometime ago. Special reduced fares accorded discharged soldiers and sailors are on the basis of two-thirds of the normal coach fare applying via route traveled, or 2 cents per mile, except that the rate per mile would, of course, be higher in those States where the basic fare is more than 3 cents per mile. Between the reduction of the fare and the special meal rate made, it is believed they have been amply provided for, particu- larly in view of the fact that the additional passage charge for occu- pancy of space in parlor and sleeping cars is canceled on December 1. so that such discharged soldiers and sailors will have at their command at least a half cent per mile more than they actually need to cover their total expenses in reaching home. FREEDOM FROM CONGESTION, December 3, 1918. Director General McAdoo to-day authorized the following: The difficult experiences of railroads in recent years with serious traffic congestions which clogged transportation resulted in the Kail- road Administration early in the year making comprehensive plans to prevent the movement of freight in the areas where congestion was threatened. This policy Avas then extended Avith respect to numerous sorts of traffic destined to difficult areas to prevent the loading of shipments except upon the issuing of i^ermits which would only be granted upon showing that the shipments could be unloaded at destination. The consistent carrying out of these policies lia^ resulted in an exceptional degree of freedom from congestion during the period of 133 heavy business this fall and there are now outstanding no general embargoes against the free movement of traffic. In this respect transportation conditions are much better than for several years past at this season of the year. In view of the greatly improved conditions it is the policy of the Railroad Administration to employ embargoes in the most sparing manner possible and with the gi-eatest possible consideration of the public, and it is hoped that the necessity for such steps will be com- j)aratively small. At the same time, however, if difficult conditions so unexpectedly arise the only way to deal effectively with them will be through the prompt use of measures which will prevent railroads being clogged through having thrown upon them shipments which can not be promptly moved and which would only serve to impair the current transportation capacity. Due to improved transportation conditions it is not expected that embargoes will be necessary during the coming winter to an^'thing like the extent to which they were used a year ago. With the experi- ence gained during the past year, and the system which has been Avorked out during that time, the Railroad Administration is in a position to direct the operation of the roads in such manner as to result in the handling of a maximum amount of tonnage with the least practical interference. There is now outstanding a list of standard exemptions to em- bargoes which was carefully worked out and issued in February, 1918, with accompanying instructions that commodities listed should be exempted in the order shown where the use of embargo in varjang ilegrees might be necessary. The effect of this has been that much unnecessary work and delay in making shipments has been avoided by the elimination of applications for and issuance of permits in connection with such .conmiodities the nature of which made it neces- sary that transportation should be arranged. This list, for instance, has recognized in the firet instance the necessity of moving live stock and jjerishables, following in turn have been fuel in its varying forms, food and feed for human and animal consumption, Govern- ment freight, etc. Experience has proven that this list should be maintained substantially as at present as it is satisfactorily pro- tecting the public interest. PASSENGER SERVICE. to the american people. December 10, 1918. On January 6 last, important changes in passenger train service on the eastern roads became effective, and at that time I issued 134 a public statement saying that "Every patriotic citizen can directly help the Government in clearing up the present unsatisfactory sit- uation on the railroads by refraining from all unnecessary travel at this time." The policy thus outlined has of necessity been continued throughout the period of the war because the primary duty of the railroads was to contribute their maximum power to the winning of the war. This emergency has now passed. The war has been won. In this epochal outcome the American railroads have played a vital part. Transportation has underlaid every industrial activity during the war as it does in peace time. Without adequate transportation our troops and the supplies for our own Army and for the armies of our allies could not have been moved. To this splendid achievement those Americans who refrained from traveling unnecessarily during the war may justly feel that they contributed. During the war the transportation of civilian passengers and of freight not needed in the war was of secondary importance. After giving priority to the movement of war necessities, it has been the policy of the Railroad Administration to supply the most adequate service possible, both passenger and freight, to nonwar business. The war now being practically over, it will be the policy of the Railroad Administration during the remaining period of Federal control to give to. the public the best service of which the railroads are capable. While the necessity still remains for moving large quan- tities of supplies to Europe, and while a considerable proportion of the railroad passenger equipment will be needed in returning Ameri- can. soldiers and sailors to their homes, the problem can now be defi- nitely appraised and there is every reason to believe that adequate service may be given in the future for the ordinary business of the Nation. As rapidly as possible, service will be improved, although trains which were run under private control merely for competiti%e reasons will not be restored. Such service was unnecessary. Plans have al- ready been made for service to California, Florida, and the South- eastern States during the coming winter. The public may be assured that the Railroad Administration will do everything possible to meet the needs of the traveling public. In line with this policy was the recent elimination, effective December 1, of the extra one-half cent a mile for traveling in Pullman cars, and of one-fourth cent a mile for traveling in tourist coaches, which was imposed as a war meas- ure partially for the purpose of keeping passenger travel during the war at a minimum. There were some wasteful and extravagant practices during pri- vate control of railroads. These will not be restored during the 135 period of Federal control but, within the limits of good business practice, the public may expect every reasonable convenience and comfort on the railroads operated by the Government. (Signed) W. G. McAdoo, Director General' of Railroads. LETTER TO JUDGE SIMS IN RE RAILROAD LEGISLATION. December 11, 1918. My Deapx Judge Sims: The question of railroad legislation is of such vital importance to the country that I take the liberty of submit- ting to you mv views as to the course that should now be pursued. Tlie war is ended, and we are now confronted with the necessity either ot legislating intelligently about the railroad problem at this session of the Congress or of promptly returning the railroads to their owners. Less than three months of the present session of the Congress re- main. It will be impossible, I presume, to secure legislation in this short period providing a permanent solution of the railroad problem. This being true, only three courses are open : ( 1 ) Government opera- tion of the railroads for one year and nine months following a proc- lamation of peace, which would mean, in my judgment. Government operation for a period in no event longer than two years and three months; (2) the prompt return of the railroads to private control; or (3) extension of the period of Federal control to five years. I am convinced that it is wholly impracticable, as well as opposed to the public interest, to attempt to operate the railroads under the provisions of the present law. In the first place, the time is too short, and, secondly, the present legislation is inadequate. As to the shortness of time, it is clear to me that the railroads can not be successfully operated under Federal control during the next two years in the face of an automatic transfer to private control at the end of that time or of an earlier relinquishment by proclamation of the President. Every month that passes will bring more clearly to the minds of the officers and employees the fundamental change in management that is impending, and the question as to what that change means to the individual. It is against human nature that there can be complete and single-minded attention to duty under such dif- ficult circumstances. This will be especially true on account of the inevitable discussion as to what ought to be done. Already this dis- cussion is in full swing, and its reaction on offices and employees can not be consistent with the complete concentration upon their daily duties. State railroad commissions, railroad security holders, rail- road executives, shippers' organizations, and other interests are natu- rally and properly discussing the subject and proposing various solu- 136 tions. However desirable the discussion is for the crystallization of public sentiment, it can not result otherwise than to produce a state of uncertainty and ferment among the vast army of railroad officers and employees who will inevitably feel that they face a rapidly approach- ing change in management. No business in the United States so imperatively requires dis- ciplined organization and composed conditions of operation, for offi- cials as well as for employees, as the railroad business. Not only does the safety of the lives of millions of passengers depend upon such disciplined and efficient organization, but the commerce of the country as well. To keep this vast army of officers and employees in a state of uncertainty and ferment for a period of two years would be harmful in the highest degree to the public interest. It would be impossible to prevent a serious impairment of the morale of the railroad organizations. From the standpoint of needed improvements, the period of two years is entirely too short a time within which to plan and carry out the comprehensive improvements which ought to be made to meet the country's requirements under peace conditions. Many of the im- provements could hardly be completed and put into operation inside of the two-year period, and under such circumstances and facing a change to private management at the end of two years, it would be unwise in the highest degree to make the improvements and im- possible to secure the hearty cooperation of the railroad corporations. Because of the inadequacy of the present legislation, the authority of the States and the Federal Government has been left in doubt by provisions which I opposed when the bill was under discussion. Con- flict between State and Federal jurisdictions will grow more acute under this law. The revolving fund appropriated by the Congress will be insufficient to carry the Federal operation for a two-year period. More than that, it is of the utmost importance to the com- merce, industry, and life of the American people that a comprehen- sive program of improvements to raih'oad properties shall be carried forward over a period of at least five years ; such a program will in- volve expenditures of at least $500,000,000 per annum or $2,500,000,000 for the five-year period. The needed funds are not provided by the present law. ]\Ioreover, it is difficult under the present law, without the consent of the corporations, to carry forward a comprehensive plan of joint improvements, which, to be of value to the public, must of itself disregard the selfish and irreconcilable competitive interests of the various carriers. Many terminal improvements, to be genu- inely serviceable to the public, must be made without regard to the interest of any particular carrier. Tlierefore, agreements between the Government and the railroads affected wilh in many instances, be impossible, and if the Government should proceed with such im- 137 provements, using the people's money for the purpose, without se- curing the carriers' consent, litigation Avould undoubtedly arise upon the termination of Federal control with the danger that a large part of the Government's investment in the properties might be lost. Upon the efficiency of the transportation machine in America de- pends in gi"eat measure the future prosperity of the Nation, In- volved in this prosperity is the extension of our foreign trade. We produce so much more than we consume that markets must be found for that surplus. Those markets are the competitive markets of the world. We must be able to enter them upon equal terms with any other Nation. Our transportation system, both on land and water, must therefore function at the highest point of efficiency and at the lowest possible cost, if we are to get our reasonable and fair share of the world's trade and in turn be able to keep a prosperous, contented, and happ3^ population at home. To attempt to continue Federal control under the inadequate pro- visions of the present Federal control act and for the very brief period it authorizes Avould be to multiply our difficulties and invite failure. On the other hand, I am convinced from the experience of the past year, that the return of the railroads to the old competitive conditions will be hurtful alike to the public interest and to the rail- roads themselves. This course, however, will bring fewer evils in its train than the unsatisfactory, if not impotent. Federal control pro- vided for by the present act. The railroads were taken over as a war measure. They have been operated during the past year for the paramount purpose of winning the war. I think it will be gener- ally admitted that the war service has been successfull}^ rendered, and I am sure that experience of great value and benefit has been gained not only for the public but for the railroads themselves dur- ing this brief test. There is one, and to my mind only one, practicable and wise alter- native, and that is to extend the period of Federal control from the one year and nine months provided by the present law to five years, or until the first day of Januar}^, 1924. This extension would take the railroad question out of politics for a reasonable period. It w^ould give composure to railroad officers and employees. It would admit of the preparation and carrying out of a comprehensive pro- gram of improvements of the railroads and their terminal facilities which would immensely increase the efficiency of the transportation machine. It would put back of the railroads the credit of the United States during the five-year period so that the financing of these im- provements could be successfully carried out. It would offer the necessary opportunity under proper conditions to test the value of unified control, and the experience thus gained would of itself indi- cate the permanent solution of the railroad problem. 138 The American people have a right to this test. They should not bo denied it. It is to their interest that it should be done. In my opin- ion, it is the only practicable and reasonable method of determining the right solution of this grave economic problem. I am not now and have not been for the past year interested in proving or disproving the theory of Government ownership or any other kind of theory. The railroads have been operated for the past year with the purpose of serving efficiently the paramount needs of the war and at the same time furnishing the best possible service to the public, whether such operation tended to prove or disprove any theory or railroad control, no matter what it might be. I have formed no opinion myself as to what is the best disposition of the railroad problem because the test has not been sufficient to prove conclusively the right solution of the problem. I believe that a five- year test will give the American people the right answer. An ounce of experience is worth a ton of theory, and with the start already made under war conditions, it would be a comparatively simple matter to complete the test so well begun and thereby gain the in- valuable experience which will determine the solution of a problem which has vexed our State and National politics and our economic development for the past generation. There are those who may say that an extension of five years for such a test will mean Government ownership. Personally I do not believe it. But whether such a test would indicate that the ultimate solution shall be Government ownership or a modified form of pri- vate ownership under effective Federal regulation, should not cause us to hesitate or refuse to act. It seems to me that in a democracy like ours, where public opinion and the judgment of the majority must finally control, the plain duty is to take those steps which will fully inform public opinion, so that the judgment may be based upon knowledge rather than upon theory. Any test which will illumine the subject so completely that public opinion may operate upon it intelligently would seem to me to be desirable in any circumstances. In this connection, may I draw your attention to the statement I made before the Committee of the Senate on January 21, 1918, in reply to a Senator who asked if I believed "in the Government ownership of railroads," I said: I do not, or I have not, at least, felt that It was necessary to take the actual ownership of the railroads. I believe that it will be impossible after the return of peace to restore the competitive conditions to the same extent as they existed prior to the outbreak of the war. I favor some form of governmental regulation and control of a far stronger, more intelligent, and effective char- acter than we have had licretofore, because I am satisfied that a stronger Gov- ernment control will be demanded and will have to be worked out, both in the interest of the public and in the interest of the security holders of these railroads. 139 Those who may oppose an extension of five years shouhl face the situation squarely and acknowledge that they prefer the immediate return of the railroads to private control under the old conditions without remedial legislation. It is idle to talk of a return to private control under legislation which will cure the defects of the existing laws. There is neither time nor opportunity for such legislation at present. It is impossible and hopeless for the Government to at- tempt the operation of the railroads for 21 months after peace under the present law. Therefore, the country should squarely face the condition that the railroads must promptly go back into private control with all existing legal difficulties unless the only practical alternative, viz, an extension of time, is promptly granted. I hope that the Congress in its wisdom will grant a five-year period for a test of unified railroad operation under proper provi- sions of law which will make that test effective and at the same time take the railroad question out of politics while the test is being made. Unless this is done, I do not hesitate to say the railroads should be returned to private ownership at the earliest possible moment. The President has given me permission to say that this conclusion accords with his own view of the matter. Cordiallv, vours, W. G. McAdoo. Hon. T. W. Sims, CTvairman, Interstate and Foreign Commerce Committee, Hou.se of Representatives. HOLIDAY TRAVEL. December 17, 1918. Director General McAdoo to-day authorized the following: In anticipation of heavy holiday travel which will be augmented by large numbers of soldiers and sailors on leave, on furlough, and discharged from the service, who will receive the benefit of reduced rates, the chairmen of the passenger traffic committees have been in- structed to arrange ample ticketing facilities at the military camps to give attention to providing adequate train service and when neces- sary to keep consolidated ticket offices open to a reasonable hour at night to permit the advance purchase of tickets for holiday trips. Regional Directors Markham at Philadelphia and Winchell at Atlanta have been asked to give careful attention to providing the necessary train service to take care of the heavy travel expected to move in theii territories and particularly north and south through the Washington gateway on account of the many military camps along the Atlantic seaboard. In Washington, the consolidated ticket office will be ke^Dt open daily, except Sundays, from December 16 to December 21, until 9 :30 140 p. m. The advance purchase of tickets and securing of sleeping-car accommodations is being urged. The ticket selling and information facilities at the city and depot offices are filled to capacity. A second information booth has been installed in the depot. There will be 28 ticket windows at the depot open day and night as against 12 win- dows in operation last season. Orders have been placed for a large amount of extra sleeping and parlor car and coach equipment. The Union Transfer Co. has doubled its force Avith view of handling holi- day baggage without delay. The red cap force at the station has been increased 100 per cent and extra station police will be provided. Special passenger representatives will be assigned to depot work throughout the holidays to facilitate the movement of traffic and straighten out questions regarding tickets, etc., and any confusions that arise. The passenger representatives assigned to the govern- mental departments have circularized the a arious buildings and are getting all advance information possible relative to those Avho will go on vacations and those who will leave here during the holidays per- manently, with view to selling them tickets and arranging for ac- commodations in advance. All schools in and around Washington have been looked after and arrangements made to take care of the scholars going on vacations. The terminal officials, as well as Piill- man officials, have been fully posted and are alive to the situation. LIST OF GENERAL ORDERS. 1. Employees' status January 1, 1918; oommou use of facilities; routes and rates, etc. 2. Accounting nietliods to continue as prescribed by tbe Interstate Commerce Commission. 3. Demurrage charges. 4. Classification of railroads in Eastern, Southern, and Western Regions. 5. Creation of Haiiroad Wage Commission. 6. Restrictions in expenditures of moneys ; issuance of free passes. Supplement No. 1. Newspaper advertising payments. Supplement No. 2. Newspaper advertising payments. 7. Demurrage charges (cancel G. O. No. 3). Supplement No. 1. Demurrage charges. 8. Hours of service safety appliances, and inspection laws; employees' status. 9. Restrictions in tilling othces paying .$3,000 and up and $10,000 and up. 10. Inventory of material and supplies. 11. Universal interline waybilling and standard forms. 12. Rules regarding charges to capital accounts. Supplement No. 1. Rules regarding work involving charges to capital account not in excess of $2.5,000 (amendment to par. 5. rJeneral Order No. 12). 13. Railway Board of Adjustment No. 1. 14. Daylight-saving law. 15. Requirements relating to construction, maintenance, and operation of new industry tracks. Supplement No. 1. Industry tracks; contracts; discontinuance of use of track. 16. Railroad presidents designated as companies" principal executive authorities. 17. Rules governing recording of and accounting for all transactions arising during Federal control. 18. Lawsuits against carriers while under Federal control. IS-A. Supplement. 19. Announcement of possession and control of four steamship companies. 20. Discontinuance of certain checking of operating bills. 21. Simplified bases for apportioning interroad freight revenues. 22. Appointment of general manager New York Canal Section. 23. AVeekly cash reports. Supplement No. 1. Instructions governing rendering of weekly cash reiwrt. Form T-5. 24. Insurance instructions. 25. Extension of freight credits. 25-A. Extension of freight credits. 26. Suits against carriers. (141) 142 27. Wages of railroad employees, (G. O. No. 27, for 1918, consists of 31 docu- ments. ) Supplement No. 1. Salary and wage adjustment. Supplement No. 2. Hours, wages, pay of Pullman Co. operating depart- ment (except conductors, porters, maids). Supplement No. 3. Railroads added to and made part of Article I of General Orders No. 27. Supplement No. 4. Wages, hours, and other conditions of employment of employees in mechanical departments si>ecified herein. Interpretation No. 1 to Supplement No. 4 to General Order No. 27 and Addendum No. 2 thereto. Employees in any department to be given correct classification if present pay-roll classification does not conform to ruling of Supplement No. 4 to General Order No. 27. Interpretation No. 2 to Supplement No. 4 to General Order No. 27. Question and decision regarding mechanics and helpers engaged in construction, maintenance, and repair of electric, electric-pneu- matic, electric-mechanical, and mechanical interlocking and signal- ing systems; also machinists, electricians, blacksmiths, pipe fitters, etc. Amendment No. 1 to Supplement No. 4 to General Order No. 27. Re- moval of certain inequities concei*ning compensation for helpers — shop crafts. Addendum No. 1 to Supplement No. 4 to General Order No. 27, Rates of pay and rules for coach cleaners. Addendum No. 2 to Supplement No. 4 to General Order No. 27. Rates of compensation for certain classes of employees. Supplement No. 5. Employees of operating department of Pullman Co.; wages, hours, and other conditions of employment. Supplement No. 6. Duties and authority of Board of Railroad Wages and Working Conditions extended. Supplement No. 6-A. Application for interpretation of wage order. Supplement No. 7. Rates of pay and rules for overtime and work- ing conditions for all clerical forces in all departments and for cer- tain employees in stations, storage or terminal warehouses, docks, storehouses, shops, and yards are hereby ordered (superseding G. O. No. 27, and in lieu thereof, as to employees herein named). Interpretation No. 1 to Supplement No. 7 to General Order No. 27. Overtime monthly, weekly, or daily paid employees. Intei-pretation No. 2 to Supplement No. 7 to General Order No. 27. Employees paid on a tonnage or piece-work basis, earning in ex- cess of 43 cents per hour ; rates of pay. Supplement No. 8. Rates of pay and rules for overtime and working conditions for employees in maintenance of way department (except mechanics and helpers where provided for in Sup. No. 4, G. O. No. 27, and clerical forces). Interpretation No. 1 to Supplement No. 8. Overtime monthly, weekly, or daily paid employees. Interpretation No. 2 to Supplement No. S. House and l)ri(lge cjiriten- ters — rates of pay. Supplement No. 9. Additional duties of railroad wages and working conditions. 143 27 — Continued. Supplement No. 10. Rates of pay. rules for overtime, and working conditions for telegraphers, telephone operators (except switchboard operators), agent telegraphers, agent telephoners, towerman, lever- man, tower and train directors, block operators, and staffmen are hereby ordered (superseding G. O. No. 27 and in lieu thereof). Supplement No. 11. Rates of pay, rules for overtime, and working conditions for certain employees. Supplement No. 12. Rates of pay, rules for overtime, and duties of passenger brakemen or flagmen. Supplement No. 13. Rates of pay, rules for overtime, and working conditions for telegraphers, telephone operators (except switchboard operators), agents, agent telegraphers, agent telephoners, towei-men, levermen, tower and train directors, block operators, and staffmen hereby ordered (superseding G. O. No. 27 its Sups. Nos. 10 and 11 and in lieu thereof). Intei-pretation No. 1. Approval of recommendation of Railroad Board of Adjustment No. 1, in matter of construction of General Order No. 27, relating to bases of pay for yard engineers, yard firemen, yard conductors or foremen, and yard brakemen or helpers. Interpretation No. 2. Pay bases to be observed in application of rates of pay under General Order No. 27 — ^AU persons employed in any capacity, and receiving lessi than $250.00 per month in salary, will receive increases named in General Order No. 27 unless specifically excluded therein. Interpretation No. 3 to General Order No. 27 and to Supplement No. 4, Addenda Nos. 1 and 2, Interpretation No. 1 and Amendment No. 1 thereto. Method of applying increases to pieceworkers. Interpretation No. 4. Back pay claim. Interpretation No. 5. Increase of salary claim. Interpretation No. 6. Station agent on a certain railroad claims the service he renders is not special service and that he is entitled to an increase under General Order No. 27 — decision. Interpretation No. 7. Assistant passenger ticket agent's claim for increase granted. 28. Increased passenger and freight rates. Supplement. Increased passenger and freight rates. 29. Railway Board of Adjustment No. 2. 30. Settlement of interroad bills and accounts. 31. Rules and regulations governing accounting for use of equipment or facilities. 32. June 29, 1918, apportionment of passenger revenues. 33. Appointment of G. A. Tomlinson as Federal manager New York and New Jersey Canals. 34. Sale of refused and unclaimed perishable and nouperishable freight. 34-A. Carload and less than carload perishable freight to be sold at auction if unclaimed after 60 days. 35. Appointment of INI. J. Sanders Federal manager Mississippi and Warrior Waterways. 36. Premiums on Fidelity bonds to be charged to oiierating expenses. 37. Duties of Federal treasurers. 144 3T-A. Revision of General Order No. 37. 38. Shipping designation for Government shipments. 30. 8ale of liquors and Intoxicants in dining cars, restaurants, and railroad stations under Federal control shall be discontinued immediately. 40. Complaints of lack of c-onsideratiou and courtesy to public. 41. Regulations governing disposition of interroad freight claims for loss and damage. 42. Elections, Federal and State^Political activity for I'ailruad officials and em- ployees prohibited. Supplement No. 1. Modifications of rules regarding jiolitical activity of officials and employees. 43. Garnishment or attachment or like process. 44. Chief accounting officer in general charge of one or more accounting organ- izations of director general shall be designated " Federal auditor " — duties. 45. Daylight saving law — clocks to be turned back. 46. Safety of employees and travelers upon ]-ailroads. 47. Repairs to equipment. 48. Further modification of ruling regarding political activity of officials and employees of railroads (in lieu of and as a substitute for G. O. No. 42 and Sup. No. 1 thereto). 49. Standard forms of monthly ticket and excess baggage reports. 50. Lawsuits, specified — to be brought against AVilliam (J. ^McAdoo, Director General of Railroads. 51. Seniority rights for employees v^'ho have entered niilitary service uf Army and Navy. 52. Carriers by water — rules and regulations governing ti-ansactions of — ac- counting. 53. Agreement between regional directois and certain organizations, jtroviding for basis of compensation and regulations of employment. 54. Tribunal named for adjustment of certain disputes betv.een American Rail- way Express Co. and its employees — Division of Traitor of the Ignited States Railroad Administration to deal with controversies. 55. Collection of transportation charges and disposition of overcharges, under- charges, and agency relief claims. 56. Increase of express operating revenues. 57. Rules governing the inspectivisions therein contained it is, until further order, directed that — 1. All officers, agents, and emploj'ees of such transportation sys- tems may continue in the performance of their present regular duties, reporting to the same officers as heretofore and on the same terms of employment. 2. Any officer, agent, or employee desiring to retire from his em- ployment shall give the usual and seasonable notice to the proper officer to the end that there may be no interruption or impairment of the transportation service required for the successful conduct of the Avar and the needs of general commerce. NATIONAL NEEDS PARA3IOUNT. 3. All transportation systems covered by said proclamation and order shall be operated as a national S3^stem of transportation, the common and national needs being in all instances held paramount to any actual or supposed corporate advantage. All terminals, ports, locomotives, rolling stock, and other transportation facilities are to be fully utilized to carry out this purpose without regard to owner- ship. 4. The designation of routes by shii)pers is to be disregarded when sj^eed and efficiency of transportation service may thus be promoted. 5. Traffic agreements between carriers must not be permitted to interfere with expeditious movements. 105889°— 19 10 (145) 146 THROUGH ROUTINGS TO BE ESTABLISHED. 6. Through routes which have not heretofore been established be- cause of short hauling or other causes are to be established and used whenever expedition and efficiency of traffic will thereby be pro- moted ; and if difficulty is experienced in such through routing notice thereof shall, by carriers or shippers or both, be given at once to the director by wire. 7, Existing schedules or rates and outstanding orders of the Inter- state Commerce Commission are to be observed, but any such sched- ules or rates or orders as may hereafter be found to conflict with the purposes of said proclamation or with this order shall be brought immediately by wire to the attention of the director. W. G. McAdoo, Director General of Railroads. General Order No. 2. Washington, D. C, Decemher 29^ 1917. To the chief executive' of the railroads: Pursuant to the authority vested in me by the President of the United States in his proclamation of December 26, 1917, wherein it was stated that for purposes of accounting, possession and control of the railroads shall date from 12 o'clock midnight on December 31, 1917, you are notified that, until otherwise directed, no changes in the present methods of accounting as prescribed by the Interstate Commerce Commission will be required. The accounts of your re- spective companies shall be closed as of December 31, 1917, and opened as of January 1, 1918, in the same manner as they have here- tofore been handled at the close of one fiscal period and the beginning of another, and in the same manner that you should have handled your accounts had the Government not taken possession and control. William G. McAdoo, Director General of Railroads. General Order Xo. 3. All carriers by railroad subject to the jurisdiction of the under- signed are hereby ordered and directed forthwith to publish and file, and to continue in effect until further order, tariffs effective January 21, 1918, wherein demurrage rules, regulations, and charges shall be changed so as to provide — A. (1) Forty-eiglit hours (two days) free time for loading or un- loading on all commodities. 147 (2) Twenty-four hours (one day) free time on cars held for an}' other purpose permitted by tariff. B. Demurrage charges per car per day or fraction of a day until car is released, as follows: Three dollars for the first day, $4 for the second day, and for each succeeding additional day the charge to be increased $1 in excess of that for the preceding day until a maximum charge of $10 per car per day shall be reached on the eighth day of detention beyond free time, the charge thereafter to be $10 per car per day or fraction thereof. These charges will supersede all those named in existing tariffs applicable to domestic freight, and specifi- cally contemplate the cancellation of all average-agreement provi- sions of existing tariffs. No change is authorized hereby to be made in demurrage rules, regulations, and charges applying on foreign export freight awaiting ships at export points. Upon my request, the Interstate Commerce Commission has issued Fifteenth Section Order Xo. 225, authorizing the filing of tariffs to accord with this order to become effective January 21, 1918, on one day's notice. Carriers shall immediately file said tariffs witli appropriate State commissions or other State authorities. Dated at Washington this 5th day of Januarv, 1018. W. G. McAdoo, Director General of RaUroorl:. General Order Xo. 1. Washington, January 18, 1918. For purposes of operation the railroads of the United States will be classified as Eastern Railroads, Southern Railroads, and Western Railroads, defined as follows: Eastern. Railroads.- — The railroads in that portion of the United States north of the Ohio and Potomac Rivers and east of Lake Michigan and the Indiana-Illinois State line : also those railroads in Illinois extending into that State from points east of the Indiana- Illinois State line : also the Chesapeake & Ohio, the Xorf oik & West- ern, and the Virginian Railways. Southern Railroads. — All railroads in that portion of the United States south of the Ohio and Potomac Rivers and east of the Mis- sissippi River except the Chesapeake & Ohio, Norfolk & Western, and the Virginian Railways; and also those railroads in Illinois and In- diana extending into those States from points south of the Ohio River. Western. Railroads. — All railroads not included in the above defi- nitions and, broadly speaking, all railroads in the territory west of 148 Lake Michigan and of the Indiana-Illinois State line to the Ohio River and west of the Mississippi River from the Ohio River to the Gulf of Mexico excepting those railroads in Illinois included in Eastern territory and those railroads in Illinois and Indiana in- cluded in Southern territory, as above stated. Mr. A. H. Smith, president of the New York Central, is appointed regional director, with office at New York, in charge of the operation of eastern railroads. Mr. C. H. Markham, president of the Illinois Central, is appointed regional director, with office at Atlanta, in charge of the operation of southern railroads. Mr. R. H. Aishton, president of the Chicago & North Western, is appointed regional director, with office at Chicago, in charge of the operation of western railroads. Orders issued by the gentlemen named in their capacity as re- gional directors will be issued by authority of the Director General and will be respected accordingly. W. G. McAdoo, Director GeTieral of Ra'drocul>i. General Okder No. 5. Washington, Januupy IS, 1918. Pursuant to the authority vested in me as Director General of Rail- roads by the President of the United States in his proclamation of December 26, 1917, 1 hereby create a Railroad Wage Commission and name as the members thereof, Franklin K. Lane, Secretary of the In- terior; Charles C. McChord, member of the Interstate Commerce Commission; J. Harry Covington, Chief Justice of the Supreme Court of the District of Columbia, and William R. Willcox of New ^'ork. It is ordered and directed that: The commission shall make a general investigation of the compen- sation of persons in the railroad service, the relation of railroad wages to Avages in other industries, the conditions respecting wages in different parts of the country, the special emergency respecting wages which exists at this time owing to war relation between differ- ent classes of railroad labor. The commission shall begin its labors at once, and make report to the Director General, giving its recommendations in general terms as to changes in existing compensations that should be made. Officers, agents, and employees of the railroads are directed to furnisli to the Railroad Wage Commission upon request all informa- tion it mav require in the course of its investigations. W. G. McAdoo, Director General of Railroads. 149 Gemeral Order No. 6. VrASHiNGTON, Januarij £8, 19 IS. To officers and directors of redlroeid companies: During the period of possession, operation, and Government con- trol of railroads, it is necessary that oflicers, directors, and agents of railroad companies be very careful in the handling of moneys and in the dealing with transportation matters. Without attempting at this time to give general directions, there are a few matters involv- ing the expenditure of moneys for purposes having no direct rela- tion to transportation, which should receive immediate attention : as ■well as the issuance of free transportation. It is therefore ordered that the carriers" operating revenues shall not be expended : 1. For the payment of agents or other persons Avho are employed in any way to affect legislation. 2. For the employment of attorneys who are not actually engaged in the performance of necessary legal work for the company. 3. For the payment of the expenses of persons or agencies con- stituting associations of carriers unless such association is approved in advance by the Director General. 4. For any political purpose or to directly or indirectly influence the election of any person or an election affecting any public measure. ISSUANCE f>F ITtEE PASSES. No passes or free transportation shall be issued by any carrier under Federal control or any official of such carrier unless the issu- ance of such free transportation is expressly authorized by the act of Congress entitled "An act to regulate commerce, approved February 4. 1887, and amendments thereto " ; and any such passes or free trans- l^ortation heretofore issued not in conformity with said act must be recalled. This order applies to all carriers under Inderal control, whether iiiter&tate or intrastate. W. G. McAdoo, Director' General of Railroads. Supplement Xo. 1 to General, Order No. 6. Washington, March 26, 1918. On the 28th day of January, 1918, General Order No. 6 was issued, prohibiting the issuance of free transportation except as expressly authorized by the act of Congress approved February 4, 1887, and amendments thereto. 150 The carriers, in obedience to said order, withdrew the passes or mileage books which had theretofore been issued pursuant to con- tracts for newspaper advertising, tlie issuance thereof interstate hav- ing been held unlawful by the Supreme Court of the United States (219U. S., 48G). It later came to my attention that contracts for newspaper adver- tising to be paid for in transportation at a fixed rate had been made in various sections of the country ; that mileage books had been issued pursuant to such contracts; and that the war tax thereon had been paid as required by law. It seemed to me important, therefore, that the legality of such contracts should be passed upon by the Interstate Commerce Commission. Accordingly this, and a number of other questions growing out of General Order No. 6, was referred by me to the Interstate Commerce Commission for consideration. I am in receipt of its report, dealing only with this question, in which it is said : In view of the circumstances '"' * ■' we are inclined to suggest the advisa- bility of modification of the Director General's Order No. 6 to the extent of per- mitting a continuance of contracts already made for the exchange of intrastate passenger transportation for advertising to the termination of such contracts, but in no instance beyond the end of the current calendar year. We recommend such modification of the order, but suggest that in connection therewith it be made entirely clear that it applies only to contracts now in effect, and which are not repugnant to State requirements ; that it authorizes only completion of such contracts which expire prior to the end of the present calendar year, and a con- tinuance only to the end of the year of any which may by their terms terminate at a later date. It should also, we think, be made clear that transportation issued under such contract may not be used in connection with other transporta- tion on any interstate journey. It is therefore ordered that the said General Order Xo. 6 be, and the same is, modified accordingly, and the carriers will be permitted to recognize the validity of said contracts and honor transportation to the extent recommended by said commission. W. G. McAdoo, Director General of Railroads. Supplement No. 2 to General Okder Xo. 0. Washington, Decemher 31^ 1918. On January 28, 1918, General Order Xo. 6 was issued prohibiting the issuance of free transportation, except as authorized by the act of Congress approved February 4, 1887, and amendments thereto. Question having arisen as to the application of said order to con- tracts between the carriers and newspaper publishers providing for an exchange of intrastate railroad transportation for advertising, the order was supplemented on March 26, 1918, to permit the continuance 151 of such contracts to the end of the present calendar year. The au- thority to renew such contracts to cover the legitimate advertising requirements of the carriers, where not repugnant to State require- ments, is hereby extended for the year 1919. Contracts executed un- der this authority shall provide — First. That the rates charged thereunder by the newspaper pub- lishers shall not exceed their usual commercial rates. Second. That the value of the transportation provided by the car- riers shall be computed on the basis of the normal tariif fare for one- way tickets. Third. That transportation so issued shall not be used upon any part of an interstate journey. W. G. McAdoo, Director General of Railroach. General Order Xo. 7. All carriers by railroads, subject to the jurisdiction of the under- signed, are hereby ordered and directed forthwith to publish and file, and to continue in effect until further order, tariffs in the form shown in the attached appendix, effective February 10, 1918, wherein de- murrage rules, regulations, and charges shall be changed so as to provide : A. (1) Forty-eight hours (two days) free time for loading or un- loading on all commodities. (2) Twenty-four hours (one day) free time on cars held for any other purpose permitted by tariff. B. That the average agreement rule be permitted, but that it apply solely to cars held for unloading. C. That under the average rule the number of days on which debits accrue be made four instead of five. D. That the demurrage charge on all cars, after the expiration of the free time allowed, be $3 for each of the first four days, $6 for each of the next three days, and $10 for each succeeding day. E. That the bunching rule be reinstated with the following change in paragraph 2: Cars for unloading or reconsigning. — When, as the result of the act or neglect of any carrier, cars originating at the same point or at intermediate points moving via the same route and destined for one consignee, at one point, are bunched at originiating point, in transit, or at destination, and delivered by the carrier in accumulated num- bers in excess of daily shipments, the consignee shall be allowed such free time as he would have been entitled to had the cars been de- livered in accordance with the daily rate of shipment. Claim to be presented to carriers' agent within fifteen (15) days. 152 These charges will supersede all those named in any existing tariffs applicable to carload freight except : 1. Cars loaded with live stock. 2. Empty cars placed for loading coal at mines or mine sidings or coke at coke ovens and cars under load at mines or mine sidings or coke at coke ovens. 3. Foreign export freight awaiting ships at ports. 4. Coal for transshipment at tidewater or lake ports. 6. Empty private cars stored on railroad or private tracks, pro- Tided such cars have not been placed or tendered for loading on the orders of a shipper. and specifically contemplate the concellation of all conflicting pro- visions of existing tariffs. Upon my request the Interstate Commerce Commission has issued Fifteenth Section Order No. 300, authorizing the filing of tariffs to accord with the appendix hereto and to become effective February 10, 1918, on one day's notice. Carriers shall immediately file said tariffs with appropriate State commissions or other State authorities. Order No. 3 is hereby withdrawn and canceled. Washington, D. C. January 29, 1918. W. G. McAdoo, Director General of Railroads. Appendix to Order No. 7 of the Dip.ector General or Railroads — National Car Demurrage Rules. EFFECTIVE FEBRUARY 10. lOlS. CHANGES INCREASES. Rules. Instructions and Explanations. Rule 1. — Cors- subject to rules. To Hui.e 1. — Cars subject to rules. Cai's held for or by consignors or Cars loaded with company material oonsiiinees for loadins, unloading, for- for use of and consigned to the rail- warding directions, or for any other road in whose possession the cars are purpose, are subject to these demur- held are not subject to dennirrage, and rage rules, except as follows: shall not be reported by agents unless specitically instructed so to do. Empty cars placed for loading with company material are subject to de- nnirrage, unless the loading is done by the railroad company for which the material is intended and on its tracks. Section A. — Cars loaded \\ith live Section A. — Empty cars placed for stock. loading live stock by shippers are not exempt and should be reported. Live poultry is not considered as live stock, and cars so loaded are sub- ject to demurrage. 153 Section" B. — Empty cars placed for loading coal at mines or mine sid- in.crs, 01' coke at coke ovens, and cars under load with coal at mines or mine sidings, or coke at coke ovens. Note. — Delay to cars specified in Sec- tion B will be regulated by proper Car Distribution Rules. Section C. — Empty private cars stored on carrier's or private tracks, provided sucli cars liave not been placed or tendered for loading on tlie orders of a shipper. Note. — Private cars while in railroad service, whether on carrier's or private tracks, are subject to these demurrage rules to the same extent as cars of railroad ownership. (Empty private cars are in railroad serv- ice from the time they are placed by the carrier for loading or tendered for loading on the orders of a shipper. Private cars under lading are in railroad service until the lading is removed and cars are regu- larly released. Cars which belong to an industry performing its own switching service are in railroad service from the time they are placed by the industry upon designated interchange tracks and thereby tendered to the carrier for movement. If such cars are subsequently returned empty they are out of service when withdrawn by the industry from the interchange ; if re- turned under load, railroad service is not at an end until the lading is duly re- moved.) Ri'LE 2. — Free time all owed. Section A. — Forty-eight hours' (two days) free time will be allowetl fta- loading or unloading on all com- modities. Note.- — if a consignee wishes his car held at any break-up yard or a hold-yard before notification and placement, such car will be subject to demurrage. That is to say, the time held in the break-up yard will be included within the 48 hours of free time. If he wishes to exempt his cars from the imposition of demurrage he must either by general orders given to the carrier or by specific orders as to incoming freight notify the carrier of the track upon which he wishes his freight placed, in which event he will have the full 48 hours' free time from the time when the place- ment is made upon the track designated. Section C. — Empty private cars stored on tracks switched by carriers, taken for loading witlumt order or requisition from shipper, and without formal assignment by carrier's agent, shall be recorded as placed for load- ing when actual loading is begun. Note. — Private ears belonging to an in- dustry which does its own switching, placed npon an interchange track for for- warding and refused by the carrier's in- spector, shall be released from demurrage if withdraviTi by the industry from the interchange track within twenty-four (24) hours after rejection. Private cars are not in railroad service — (a) When loaded and unloaded on the tracks of the owner and not moved over the tracks of a carrier. (6) When placed by the carrier for loading on the tracks of the owner and re- fused by the inspector. To Rule 2. — Free time allowed. Section A. — When the same car is both unloaded and reloaded, each tiansaction will be treated as inde- pendent of the other. Tliis will also apply to industries performing tlieir own switching service, in which case the industry must notify the carrier date and time car was unloaded. 154 Section B. — Twenty-four hours" (one clay) free time will be allowed — 1. When cars are held for switching orders. Note. — Cars held for switching orders are cars which are held by a carrier to be delivered to a consignee within switch- ing limits and which when switched be- come subject to an additional charge for such switching movement. 2. When cars are held for recon- signment or reshipment in same car received. XoTE. — A reconsignment is a privilege permitted by tariff under which the origi- nal consignee has the right of diversion. In event of the presence of such a privi- lege in the tariff 24 hours' free time is allowed for the exercise of that privilege by the consignee. A reshipment under this rule is the making of a new contract of shipment by which under a new rate the consignee forwards the same car to another destination. 3. When cars destined for delivery to or for forwarding by a connecting line are held for surrender of bill of lading or for payment of lawful freight charges. 4. When cars are held in transit and placed for inspection or grading. At stations where grain and hay must be inspected or graded, the consignee agreeing with the carrier in writing, for file at the station, to accept the bulletining of tlie cars as due and ade- quate notice of arrival, the bulletins must be posteoint of shipment of each, as evidenced by the bills of lading, if necessary, and forward same to the *, with re- port showing exemptienditures at AVai^hington and regional director for the di?-trict within 10 days after the work shall be contracted for or commenced. Sixth. Xo work involving a charge to capital accomit in excess of $25,000 shall be contracted for or connnenced subsequent to January 1, 1918. unless— (a) It conforms to the policy outlined in ])aragra]ih "First" hereof; and unless (h) It be authorized by the Director General. Seventh. The Director of the Division of Capital Expenditures is authorized to prescribe such forms, reciiiire snch reports, and issue such regulations and instructions as may be necessary to cany out this order. ^X. G. McAdoo, D'trcctor General of Ba'ilrocuJs, SUPPLE^IEXT Xo. 1 TO GeXERAL OrDER Xo. I'l. Washington, Xovembcr 12^ lOl^. The " standard clauses "' for the contracts between the Government and the Railroad Companies provide that "prompt notice" shall be given the Company of the making or ordering of additions, better- ments, road extensions, equipment, etc. costing more than $1,000, with an estimate of the cost thereof, and that " such notice shall be given before the beginning of the work or the acquisition of the property whenever in the judgment of the Director General it is practicable to do so.'' In order the better to comply with said agreement, paragraph " Fifth " of General Order Xo. 12, dated March 21, 1918. (which authorized in certain circumstances work involving charges to capital account not in excess of $25,000 to be contracted for and commenced in advance of approval by the Director General) is hereby amended, effective January 1, 1919, so as hereafter to read as follows : Fifth: A requisition for authority on the form prescribed by D. C. E. Circular No. 1 and Supplement 1 and by otlier Supplements issued or thar may be issued thereto shall be prepared and a copy thereof sliall be forwarded by mail to the President of the Company to be charped therewith, as provided in said Circular, as notice of the maicintr or ordering of such addition, betterment, road extension, equipment, etc. required l)y said agreement; and such copy should be so forwarded before the beginning of tlie work or the acquisition of the property except in cases of emergency or other cases where the delay incident to the preparation and forwarding of such requisitions will be detri- mental to the Government, the service, or the Company ; and in all such excep- 105889°— 19 12 178 tional cases the requisitions shall be furwardeil as soon after the beginning of the work as reasonably practicable. No vork involving a charge to capital account of $1,OC)0 or more shall be contracted for or commenced unless it be authorized by the Regional Director except in cases of emergency ; and no work involving a charge to capital account in excess of $10,000 shall be con+ractt^il for or commenced unless it be authorized by the Director of the Division of Capital Expenditures except in cases of emergency and in other cases where the delay incident to awaiting such authority on the usual form would be detrimental, in which latter cases preliminary authority should be obtained bv telegraph whenever practicable. W. G. McAdoo, Director General of Railroads. General Order Xo. 13. Washington, March 22., 191S. Whereas practically all of the railroads now under control of the Director General have in existence at this time agreements with the Brotherhood of Locomotive Engineers, Order of Eailway Conduc- tors, Brotherhood of Eailroad Trainmen, and Brotherhood of Loco- motive Firemen and Enginemen which provide for basis of compen- sation and regulations of employment ; and Whereas in existing circumstances it is the patriotic duty of both officers and employees of the railroads under Federal control, during the present war, promptly and equitably to adjust any controversies which may arise, thereby eliminating misunderstandings which tend to lessen the efficiency of the service : It is hereby ordered^ That the basis arrived at in the annexed understanding between Messrs. A. H. Smith, C. H. Markham, and R. H. Aishton, regional directors, representing the railroads in the eastern, southern, and western territories, with the chief executive officers of the Brotherhood of Locomotive Engineers, Order of Rail- way Conductors, Brotherhood of Railroad Trainmen, and Brother- hood of Locomotive Firemen and Enginemen be. and the same is hereby, adopted and put into effect as of March 2-2. 1018. W. G. McAdoo. Director General of Railroach. MEMORANDUM OF AX UNDERSTANDING BETWEEN MESSRS. A, II. SMITH, C. H. MARKHAM, AND R. II. AISHTON, REGIONAL, DIRECTORS, REPRESENT- ING THE RAILiROADS IN THEIR RESPECTIVE REGIONS, AND MR. W. S. STONE, GRAND CHIEF ENGINEER, BROTHERHOOD OF LOCOMOTIVE ENGI- NEERS; MR. A. B. GARRETSON. PRESIDENT ORDER OF RAILAVAY CONDUC- TORS; MR. W. G. LEE, PRESIDENT BROTHERHOOD OF RAILROAD TRAINMEN; MR. TIMOTHY SHEA, ACTING PRESIDENT BROTHERHOOD OF LOCO:\rOTTVE FIREMEN AND ENGINEMEN. It is understood. That all controversies growing out of the inter- pretation or application of the provisions of the wage schedule or 179 agreements which are not promptly adjusted by the officials and the oiiiployees on any one of the railroads operated by the Government shall be disposed of in the following manner : 1. There shall be at once created a commission, to be known as Ivailway Board of Adjustment No. 1, to consist of eight members, four to be selected by the said regional directors and compensated by the railroads, and one each by the chief executive officer of each of the four organizations of employees hereinbefore named and com- pensated by such organizations. 2. This Board of Adjustment No. 1 shall meet in the city of Wash- ington, within 10 days after the selection of its members, and elect a chairman and vice chairman, who shall be members of the board. The chairman or vice chairman will preside at meetings of the board, and both will be required to vote upon the adoption of all decisions of the board. 3. The board shall meet regularly, at stated times each month, and continue in session until all matters before it are considered. 4. Unless otherwise mutually agreed, all meetings of the board shall be held in the city of Washington : Provided^ That the board shall have authority to empower two or more of its members to* con- duct hearings and pass upon controversies, when properl}^ submitted at any place designated by the board: Provided further^ That such subdivision of the board Avill not be authorized to make final deci- sion. All decisions shall be made and approved by the entire board, as herein provided. 5. Should a vacancy occur in the board for any cause, such va- cancy shall be immediately filled by the same appointive authority which made the original selection. 6. All authority vested in the Commission of Eight, to adjust dis- putes arising out of the application of the eight-hour law, is hereby transferred to the Railway Board of Adjustment No. 1, in the same manner as has heretofore been done by the Commission of Eight. All decisions of a general character heretofore made by the Commis- sion of Eight are hereby confirmed, and shall apply to all railroads under governmental operation, unless exempted in said eight-hour law. Decisions which have been rendered by the Commission of Eight, and which apply to individual railroads, shall remain in effect until supereeded by decisions of the Railway Board of Adjustment No. 1 made in accordance with this understanding. , 7. The Railway Board of Adjustment No. 1 shall render decisions on all matters in dispute as provided in the preamble hereof, and when properly submitted to the board. 8. The broad question of wages and hours will be considered by the Railroad Wage Commission, but matters of controversies arising from interpretations of wage agreements, not including matters 180 passed upon by the Railroad Wage Commission, shall be decided by the Eailway Board of Adjustment Xo. 1, when properly presented to it. 9. Wages and hours, Avhen fixed by the Director General, shall be incorporated ir^to existing agreements on the several railroads, and should diiferences arise between the management and the employees of any of the railroads as to such incorporation, such questions of difference shall be decided by the Railway Board of Adjustment Xo. 1, when properly presented, subject always to review by the Director General. 10. Personal grievances or controversies arising under interpreta- tion of wage agi'eements, and all other disputes arising between officials of a railroad and its employees, covered by this understand- ing, will be handled in their usual manner by general committees of the employees up to and including the chief operating officer of the railroad (or some one officially designated by him) , when, if an agree- ment is not reached, the chairman of the general committee of em- ployees may refer the matter to the chief executive officer of the organization concerned, and if the contention of the employees' com- mittee is approved by such executive officer, then the chief operating officer of the railroad and the chief executive officer of the organiza- tion concerned shall refer the matter, with all supporting papers, to the Director of the Division of Labor of the United States Railroad Administration, who will in turn present the case to the Railway Board of Adjustment No. 1, which board shall promptly hear and decide the case, giving due notice to the chief operating officer of the railroad interested and to the chief executive officer of the organiza- tion concerned of the time set for hearing. 11. Xo matter will be considered by the Railway Board of Adjust- ment Xo. 1 unless officially refen*ed to it in the manner herein pre- scribed. 12. In hearings before the Railway Board of Adjustment Xo. 1, in matters properly submitted for its consideration, the railroad shall be represented by such person or persons as may be designated by the chief operating officer, and the employees shall be represented by such person or persons as may be designated by the chief execu- tive officer of the organization concerned. 13. All clerical and office expenses will bo paid by the United States Railroad Administration. The railroad directly concerned and the organization involved in a hearing will, respectively, assume any ex- pense incurred in presenting a case. 14. In each case an effort should be made to present a joint concrete statement of facts as to any controversies, but the board is fully authorized to require information in addition to the concrete state- ment of facts, and may call upon the chief operating officer of the 181 railroad or the chief executive officer of the organization concerned for additional evidence, either oral or writt-en. 15. All decisions of the Rnihvay Board of Adjustment X(\ 1 shall be approved by a majority vote of all members of the board. 16. After a matter has been considered by the board, and in the event a majority vote can not be obtained, then any four members of the board may elect to refer the matter npon which no decision has been reached to the Director General of Railroads for a final decision. 17. The Railway Board of Adjustment Xo. 1 shall keep a complete and accurate record of all matters submitted for its consideration and of all decisions made by the board. 18. A report of all cases decided, included the decision, will be filed with the Director Division of Labor, of the Ignited States Railroad Administration, with the chief operating officer of the railrosul affected, the several regional directors, and with the chief executive officers of the organizations concerned. 19. This understanding shall become effective upon its approval by the Direct<)r General of Railroads and shall remain in full force and effect during the period of the present war, and thereafter, unless a majority of the regional directors, on the one hand, as representing the railroads, or a majority of the chief executive officers of the orgaii- izations, on the other hancl, as representing the employees, shall desire to terminate the same, which can, in these circumstances, be done on 30 days' formal notice, or shall be terminated by the Director General himself, at his discretion, on 30 days' formal notice. Signed and sealed this 22d dav of March, 1918. A. H. Smith, C. H. Markham, R. H. AisHTOx, Regional Directors for the RcdJroads under Government Control. W. S. Stone, Grand Chief Knglneer Brotherhood of Locomotive Engineers. A. B. Garretson, Presid-ent Order of Railway Conductors. W. G. Lee, President Brotherhood of Railroad Trainmen. Timothy Shea. Acting President Brotherhood of Locomotive Firemen and Enginemen. General Order Xo. 14. "Washington, March 2o. 1918. The committee on transportation. American Railway Association, having at the request of the Director General, submitted a report in 182 connection with the Federal law. •' To save daylight and to provide standard time for the United States," which becomes effective at 2 a. m., Sunday, March 31, 1918, the following instructions, based on such report, are hereby issued : First. At 2 a. m., Sunday. ISIarch 31, all clocks and watches in train dispatchers' offices, and in all other offices open at that time, must be advanced one hour to indicate 3 a. m. Employees in every open office must, as soon as the change has been made, compare time with the train dispatcher. Clocks and watches in all oifices at the first opening, at or after the time the change be- comes effective, must be advanced to conform to the new standard time, and employees, before assuming duties in such offices, must, after the change is made, compare time with the train dispatcher. Second. Each railroad will issue necessary instructions and arrange for such supervision and check of the watches of its employees as to insure that they have been properly changed to conform to the new standard time. Third. Owing to the A'arying conditions which will prevail on the railroads of the United States, it is not advisable to issue a uniform rule or order to cover the details involved in the movement of trains at the period the change in standard time becomes effective. There- fore, each railroad must adopt such measures as may be necessary to properly safeguard the movement of its trains on the road at the time of the change. W. G. McAdoo, Director General of Railroads. General. Order Xo. 15. Washington, March 26, 1918. The following requirements must be observed in respect of the construction, maintenance and operation of new industry tracks, and in respect of the operation and maintenance of existing industry tracks : 1. As to new industry tracks : {a) The industry shall pay for. own and maintain that part of tlie track beyond the right of way of the railroad company. (6) The railroad company shall pay for, own and maintain that part of the track on the right of way from the switch point to the clearance point. ic) Generally speaking, an industry shall pay for and maintain (although in special cases the railroad company may do so), and the raihoad company shall own. that part of the track on the right of way from the clearance point to the right of way line. EErvATUM. [Insert in BullPtin No. 4 (K(>vis('d) facing pagro 182.] Supplement Xo. 1 to General Order No. 15. Washington, Decemher 5, 1018. General Order No. 15, dated March 2<5th, 1918, is hereby supple- mented as follows : 1. General Order No. 15 is not to be construed as requiring or authorizing a Federal Manager to enter into a contract on behalf of the Director General to pay for that part of an industry track on the right of way from the switch point to the clearance point where, in the judgment of the Federal Manager, the amount of traffic to be derived by the United States Railroad Administration from the con- struction of the industry track is not sufficient to justify such expendi- ture. In cases where, in the judgment of the Federal Manager, the circumstances justify the construction of an industry track, but the amount of revenue to be derived therefrom by the United States Rail- road Administration does not justify the payment by the Director General of the cost of that part of the track on the right of way from the switch point to the clearance point, an agreement may be made, otherwise in accordance with General Order No. 15, but providing for the payment of the entire cost of the track by the shipper with a pro- vision for refund up to, but not exceeding, the cost of the part of the track from the switch point to the clearance point, at the rate of two dollars ($2.00) per car of carload freight yielding road haul revenue, delivered on or shipped from the track during Federal control. 2. Track material contained in that portion of an industry track on the railroad right of way which was installed and paid for by the industry during Federal control shall remain the property of the industry, except to the extent that refund of the cost thereof shall have been made by the railroad or the Director General, but such ownership shall be subject to the right of the railroad to use the track when not to the detriment of the industry. 3. Upon the discontinuance of use of an industry track for the purposes of the industry, the industry shall have the right to have the track material on the right of way which was paid for by the industry during Federal control taken up and delivered to the industry, except to the extent that the cost of such track material shall have been refunded to the industry by the railroad or the Director General. The work of taking up the track shall be done, if the Federal Manager shall so desire, by the forces of the Federal Manager, but in any event at the expense of the industry. W. G. McAdoo, Director General of Railroads. 115473°— 19 183 {d) If the 'industry fails to maintain in reasonably safe condition the part of the track which it is required to maintain, the railroad company may disconnect the track or refuse to operate over it when not in such condition. {e) The railroad company shall have the right to use the track when not to the detriment of the industry. (/) The foregoing terms and conditions should be embodied in a written contract between the industry and the railroad company. 2. Where existing industry tracks are not covered by written con- tracts, they shall be maintained and operated in accordance with the provisions stated in paragraph 1 hereof. 3. Where industry tracks are covered by written contracts, such contracts shall be adhered to until otherwise ordered ; but where any such contracts appear to work inequalities or injustice the circum- stances should be brought to the attention of the regional director, who will report thereon to the Director General, if conditions seem to warrant. 4. The requirements of State statutes and of State commissions in respect of the construction, maintenance, and operation of industry tracks shall be complied with, but in cases where such compliance in- volves what appears to be an unreasonable burden upon the United States Eailroad Administration the circumstances should be brought to the attention of the regional director, who will report thereon to the Director General, if the conditions seem to warrant. W. G. McAdoo, Director General of Railroads. General Okder No. 16. Washington, D. C, March 28, 1918. In the organization of the various carriers, some doubt appears at times to exist as to the extent to which, if at all, the executive au- thority in operating matters is divided between the president of the company and the chairman of its board of directors, or of some com- mittee thereof. 1^'or the purpose of simplification and definiteness it is ordered that the president of each company shall be treated by the United States Railroad Administration as the company's principal executive au- thority (subject to the Director General), in all matters of operation under Federal control and that chairmen of the boards of directors or of some committees thereof shall not exercise functions connected with the operation of the railroads under Federal control. W. G. McAdoo, Director General of Railroads. 184 General Okdek No. 17. WAs^I^^GTOx, D. C, April 3, 191S. To th-e chief executive officers of carriers subject to Federal control: It is hereby ordered that the following rules and regulations shall be observed and shall govern the recording of and accounting for all transactions Avhich arise during Federal control: 1. For accounting purposes Federal control began as ot January 1, 1918. Immediate steps shall be taken by each carrier subject thereto to open ucav and separate l)ooks of accounts, such as cash books, general and subsidiary ledgers and journals, and all support- ing and subsidiary books and records incident thereto, upon Avhich shall be recorded transactions -vvhich arise under and are incident to Federal control on and after January 1, 1918. Such books shall be designated and are hereinafter referred to as " Federal books. " 2. The totals of the accounts " Cash," " Demand loans and de- posits,*' and "Time drafts and deposits" appearing on the corpora- tion's books as of December 31, 1917, shall be transferred to the Federal books, debited to accounts of the same titles, and credited to a deferred liabilty account styled "(Name of corporation) — Cash — December 31, 1917." On the corporate books the amount of such balances should be transferred to a deferred asset account styled "U. S. Government— Cash— December 31, 1917." All cash transactions subsequent to December 31, 1917, relating to operations prior or subsequent thereto, shall be recorded in the Federal cash book opened as of January 1, 1918. 3. The total of account " Net balance receivable from agents and conductors" appearing on the corporation's books as of December 31, 1917, shall be transferred to the Federal books, debited to an account of the same title, and credited to a deferred liability account styled "(Name of corporation) — Agents' and conductors' balances — December 31, 1917." On the corporate books the amount of such, balances should be transferred to a deferred asset account styled " U. S. Government — Agents' and conductors' balances — December 31, 1917." 4. The total of account " Materials and supplies " appearing on the corporation's books as of Deceuiber 31, 1917, shall be transferred to the Federal books, debited to an account of the same title, and credited to a deferred liability account styled "(Name of corpora- tion) — Materials and supplies — December 31, 1917." On the cor- porate books the amount of such balance should be transferred to a deferred asset account styled " U. S. Government — Material and sup- plies—December 31, 1917." 5. In addition to the assets above specified, there shall be likewise transferred to the Federal books and similarlv recorded thereon, such 185 other AvorkiniT assets of the coi'poration as may 1)o mntnally agreed upon. 6." There sliall be currently entered, upon such Federal books, in the manner and under the rules and regulations prescribed by the Interstate Commerce Commission or which may hereafter be pre- scribed, all transactions involving revenues, expenses, taxes, and rentals, and other items corresponding to those which constitute the basis upon Avhicli the standard return to the carrier shall be deter- mined. Such entries shall include corresponding assets and liabili- ties and the cash settlement thereof; also all transactions involving materials and supplies subsequent to December 31, 191T. 7. Transactions of the corporation, including those arising out of cash receipts or disbursements, which do not affect or which do not enter into and form a part of those used in determining the basis of standard return, such as interest and dividends received or paid, miscellaneous rents, and other similar corporate transactions, includ- ing additions and betterments, shall not be recorded on or passed through such Federal books unless such transactions be negotiated and conducted for account of the corporation by or under the direc- tion of the Director General. Where such income transactions are negotiated and conducted by or under the direction of the Director General the transactions shall be recorded on the Federal books but credited or charged to an account to be opened, styled " (Name of cor- poration) — Corporate income transactions." Concurrently, corre- sponding entries should be made on the corporate books charging or crediting the accounts prescribed by the Interstate Commerce Com- mission or which may hereafter be prescribed, the offset being in an account styled " U. S. Government — Corporate income transactions." Where additions and betterments are made by or under the direction of the Director General, the expenditures shall be charged on the Federal books to be a deferred asset account "(Name of corpora- tion) — Additions and betterments." Concurrently, entries should be made on the corporate books, charging the appropriate accounts and crediting a deferred liability account '' U. S. Government — Additions and betterments." 8. Current or operating assets, other than those prescribed in para- graphs 2, 3, 4, and 5 hereof, such as, balances due from indi- viduals and companies, and liabilities, such as. vouchers, pay rolls, etc., which were due to or by the corporation as of December 31, 1917, shall not be transferred in detail to the Federal books; but as and when such assets are collected or the liabilities are paid, they shall be credited or debited, as the case may be, on the Federal books to a deferred liability account styled "(Name of corporation) — Assets, December 31, 1917. collected," or to a deferred asset account "(Name of corporation) — Liabilities, December 31, 1917, paid." There should 186 be concurrently made, on the corporate books, corresponding entries debiting and crediting the United States Government with assets col- lected and liabilities paid. 9. Transactions relating to operations, as defined in paragraph 6 hereof, if not previously accrued, shall be included in and shall form a part of the operating results of each carrier regardless of the date thereof. Items clearly applicable to the period prior to January 1, 1018, commonly called " lap-overs," shall be ascertained currently, set up on the Federal books, and included in the appropriate accounts as heretofore. At the end of each month, the total of " lap-over " credit items shall be charged to an unadjusted debit account styled " Ke ve- nue prior to January 1, 1918," and credited to a deferred liability account styled " (Xame of corporation) — Ke venue prior to January 1, 1918." The total of " lap-over " debit items shall be credited to an unadjusted credit account styled " Expense prior to January 1, 191"8," and charged to a deferred asset account styled '*(Name of corpora- tion) — Expense prior to January 1, 1918." Operating revenues which have been accrued currently in accordance with the established practice of the. carrier shall be considered as current revenues and not as " lap-over " items. 10. The accounts between the United States Government and the corporation, for which provision is made herein, shall be adjusted in such manner as may be hereafter agreed upon. 11. Inquiries as to the interpretation and application of the pro- visions of this order and the procedure to be observed under its re- quirements shall be addressed to the Director of Public Service and Accounting. W. G. McAdoo, T) hector General of Railroad f^. General Order No. 18. Washington, Afril .9, 1918. Whereas the act of Congress approved March 21, 1918, entitled " An act to provide for the operation of transportation systems while under Federal control," provides (section 10) "That carriers while under Federal control shall be subject to all laws and liabilities as common carriers, whether arising under State or Federal laws or at common law, except in so far as may be inconsistent with the provi- sions of this act or with any order of the President. * * * But no process, mesne or final, shall be levied against any property under such Federal control": and Whereas it appears that suits against the carriers for personal in- juries, freight and damage claims are being brought in States and 187 jurisdictions far remote from the place where plaintiffs reside or where the cause of action arose, the effect thereof being that men op- erating the trains engaged in hauling war materials, troops, muni- tions, or supplies are required to leave their trains and attend court as witnesses, and travel sometimes for hundreds of miles from their work, necessitating absence from their trains for days and some- times for a week or more, which practice is highly prejudicial to the just interests of the Government and seriously interferes with the physical operation of the railroads, and the practice of suing in re- mote jurisdictions is not necessary for the protection of the rights or the just interests of plaintiffs. It is therefore ordered, That all suits against carriers while under Federal control must be brought in the county or district where the plaintiff resides, or in the county or district where the cause of action arose. W. G. McAdoo. Director Geiieral of Railroad!^. General Order No. 18-A. Washington, April 18, 1918. General Order No. 18 issued April 9, 1918, is hereby amended to read as follows : It is therefore ordered that all suits against carriers while under Federal control must be brought in the county or district where the plaintiff resided at the time of the accrual of the cause of action or in the county or district whei-e the cause of action arose. . W. G. McAdoo, Director General of Railroads. General Order No. 19. Washington, April IJ, 1918. Pursuant to the proclamation of the President of the United States, the undersigned, as Director General of Railroads, has taken pos- session and assumed control of the Clyde Steamship Co., Mallory Steamship Co., Merchants & Miners Transportation Co., and South- ern Steamship Co., at 12.01 a. m., Saturday, April 13, 1918. Until further order it is directed that : First. All officers, agents, and employees of said steamship lines may continue in the performance of their present regular duties, i-e- porting to the same officers as heretofore and on the same terms of employment. Second. Any officer, agent, or employee desiring to retire from his employment shall give the usual and seasonable notice to the proper 188 officer to the end that there may be no interruption or impairment of the transportation service required for the successful conduct of the war and the needs of general commerce. W. G. McAdoo, Director General of Railroads. General Order No. 20. Washington, D. C, April 22, WIS. Effective at once, technical and arithmetical examination and checking of all operating bills such as bills for freight and other claims, joint facilities, car repairs, and other similar bills and all statements of accounts such as distribution of freight and passenger revenues and other similar statements, rendered by one carrier sub- ject to Federal control to or against another carrier subject to Fed- eral control, which accrued or whicli may accrue on or subsequent to January 1, 1918, shall be discontinued. The carrier rendering such statements, bills, etc., shall take the necessary measures to insure the correctness thereof. W. G. McAdoo, Director General of Railroads. General Order Xo. 21. Washington, D. C, April 22, 1918. 1. SIMPLIFIED BASES FOR APPORTIONING INTERROAD FREIGHT REVENUES TO CARRIERS PERi^ORMING THE SERVICE. 1. Pursuant to the provisions of paragraph (13) of General Order Xo. 11, dated March 16, 1918, with respect to the adoption of uni- versal interline waybilling, the following regulations will be ob- ."frved beginning with the May, 1918, accounts in apportioning freight revenues to individual carriers subject to Federal control which perform interroad freight service. 2. In cases where interline billing has been in effect covering all or a major portion of froiglit traffic interchanged between two or more carriers via the same route, although the interline waybill may not cover the movement from origin to final destination of the traffic: («) The waybill destination carrier shall determine, from inter- line division statements for the period of 12 months ended Decem- ber 31, 1917, the aggregate freight revenue on interline freight traffic from each initial waybilling carrier separately via each route. There shall likewise be determined the amount apportioned to each 189 mdividual carrier separately via each route. There shall be included in such aggregate freight revenue, and in the amounts due to each carrier, as their interests may appear, terminal allowances, bridge tolls, lighterage, insurance, and other arbitraries. If the interline method of accounting became effective via any route subsequent to Januar}'^ 1, 1917. the division statements for the longe>t period ob- tainable (not exceeding 12 months) prior to May 1, 1918. shall be used. (6) From the aggregate freight revenue, and the revenue due to each carrier via each route, ascertained in the manner prescribed in the preceding paragraph, the ratio of the revenue allotted to each carrier via each route to the total revenue shall be determined and stated in two figure per cents; sucli per cents shall be designated as " road to road " per cents. The per cents thus determined for each route shall be used for apportioning the revenue from the traffic moving over it on interline waybills to be accounted for beginning with May, 1918, accounts, until and unless otherwise ordered. (c) When the accounts for commodities moving in large volumes, such as coal, have, as a matter of general practice, been kept sepa- rately, separate road to road per cents, based on revenues from that class of traffic, may be determined as above prescribed and used in apportioning the revenues therefrom. 3. In cases where interline waybilling has not been in effect or where it has l)eon applied to only a small part of tlie traffic moved between two or more carriers via the same route : ((/) Destination carriers of the freight shall apportion and settle the revenues on interline waybills to be accounted for in May, 1918, accounts on bases of established divisions. From the totals of pro- portions thus settled, destination carriers shall compute two figure per cents for traffic for each initial carrier via each route. Such per cents are herein designated as " road to road " per cents and shall be used thereafter to apportion revenues via such roads and routes, re- spectively, on that class of traffic unless and until otherwise ordered. When traffic moves only in small volume, destination carriers may compute two figure station to station per cents based on revenues produced by the application of established division bases, and use such station to station per cents instead of the road to road per cents. (e) In the event freight traffic moves during the month of June, 1918, or thereafter via routes over which there were no freight move- ments covered by interline waybills prior thereto, destination car- riers shall apply the established divisions in apportioning the reve- -, nue on such shipments during the month in which the traffic first moves. Thereafter, the revenue on such traffic shall be divided on either road to road or station to station per cents as may be ap- plicable. 190 (/) TMien the accounts for coniniodities moving in large volumes, such as coal, have as a matter of general practice, been kept sei:)a- rately, separate road to road per cents based on revenue from that class of traffic may be determined as herein prescribed and used in apportioning the revenues therefrom. 4. In cases where freight traffic moves via unusual or diverted routes over which no divisions apply and via which no experience can be ob- tained, destination carriers shall apportion the revenues therefrom on a 20-mile block-mileage basis, each carrier to be allowed at least 20 miles and originating and terminal carriers an additional 20 miles each as constructive mileage. 5. The formulae prescribed herein for apportioning interline freight revenues to carriers performing the service are intended to pre- serve, as equitably as practicable, the integrity of the revenues of individual carriers, and their use shall be generally observed. If by reason of new traffic developments, or the abnormal shifting of traffic, the continued application of the road to road per cents herein pro- vided for might seriously distort the revenues of interested carriers, the destination carrier may. upon its own initiative or by request, test apportionment of revenues for a specific month or period by ap- plying the established division bases thereto. If results thus ob- tained vary substantially from the results obtained by the application of road to road per cents as herein provided for, and the change appears to be f)ermancnt, application may be made to the Director of Public Service and Accounting to adjust the divisions to such bases as will produce more equitable results. Applications for changed ap- portionment bases based upon ordinary traffic fluctuations will not be considered. II. MODIFICATION OF PRACTICES IX ACCOUXTTNG FOR FREIGHT AXD RELATED REVENUES. G. Destination carriers shall completely revise waybills as to rates, classifications, extensions, footings, weights, etc., thus insuring the correctness of the revenues based on tariffs applicable, and they shall accoimt to interested carriers for their respective proportions of such revenues in the manner hereinbefore prescriljed. If flagrant or con- tinued use of erroneous rates or classifications be observed by destina- tion carriers, the attention of billing carriers must 1)e'speciall_v called thereto. Where ordinary changes or corrections are made in way- billed revenue by destination agents, correction notices need not be made therefor to intermediate or originating carriers unless advances or prepaid charges be involved. 7. Paragraph 10 of General Order No. 11 provides that settlements by destination carriers witli all other interested carriers shall be accepted as final. This provision discontinues the adjustment among 191 carriers of overcharges and undercharges in revenue, but does not prohibit the adjustment of differences in advances and prepaid items, clerical errors in addition and divisions, or errors due to omissions, diversions, etc. 8. Effective at once, no apportionment shall be made among car- riers of charges absorbed, such as switching, elevation, transfer charges, terminal delivery charges, icing, cost of grain and coal doors, and other similar items accruing during Federal control; such ab- sorbed charges shall be borne by paying carrier: III. ^lODIFir.VTIOXS AXD IXTERPRETATIOXS OF GENERAL ORDER XO. 11. 9. Paragraph 11 of General Order No. 11 prescribes certain forms to be used in preparing audit office settlement accounts. Until fur- ther ordered, carriers may use sucli prescribed forms or they may use those now in use by them in settlement of interline freight ac- counts until such time as a more complete study is. made of the forms which will later be prescribed. 10. Subparagraph (b) of paragraph 8 of General Order No. 11 provides that : " Only the original and one copy of the waybill shall be made." This provision is hereby amended to the extent of per- mitting carriers taking such additional copies of waybills as may be necessary to maintain the integrity of the accounts. The first copy must be printed in the same form as the original, but may be on a lighter weight of paper. Any additional copies beyond the first may be prepared on blank paper. 11. While paragraph 8 of General Order Xo. 11 provides for a standard form of waybill, such order does not prohibit the continua- tion or adoption of a color scheme for waybills for specific or special traffic when such color scheme tends to expedite or protect the freight. 12. If, under prevailing practices, freights originating on or des- tined to points on switching or tap lines are waybilled from or to trunk-line junctions or connections with such switching or tap lines and junction, settlements are-made at such points of connections, such practices may, until further ordered, be continued. W. G. :^IcAdoo, Director General of Railroads. General Order Xo. 22. Washixgtox, April 22, 1918. Mr. G. A. Tomlinson is hereby appointed general manager of the X"ew York Canal Section of the United States Railroad Administra- tion and as such will have charge of the construction and acquisition of equipment for use upon the Xew York State Barge Canal and, as 192 an incident thereto, for use upon the waters connecting therewith, and will operate such equipment for the Director General of Railroads upon such canal and other waters. He is hereby empowered to enter into contracts, either in his own name as such general manager or in the name of the Director General of Railroads, for the constmction, acquisition, or chartering of such equipment, for the purchase of supplies needed in such operation, and for the transportation of property upon such canal and other waters. ^V. G. McAdoo, Director General of Railroads. General Order Xo. 23. Washington, D. C, May 2, 1918. Each and every carrier subject to Federal control shall render a weekly cash report on Form T-5, as per copy herewith. The first report shall be rendered as of May 4, 1918. W. G. McAdoo, Director General of Railroads. ! Form T-5.1 (Name of company.) Statement of cash resources and requirements. .,191 (Date of end of week.) Code. Cash on hand and in banks (as defined in T. C. C. account 708), inchidiug demand loans and deposits (I. C. C. account 709), less amount of any outstandingchecks: In New York In Chicago Tn St . Louis In other cities and towns Amount (cents omitted). T ot al cash Time drafts and time defjosits receivable during current month Estimated amount of othercash receipts during remainder of current month. . Total E stimat ed amont of cash receipts during month subsequent t o current m ont li . . Total resources Unpaid vouchers actually outstandins Unp;iid i)ay rolls or pay-roll checks Interest matured unpaid Dividends matured unpaid Other liabilities, including notes and funded debt, due and payable during current month Total Kstimated amount of additional obligations, including notes and funded debt, due and payable during month subsequent to current month Total requirements Excess of resources over requirements Excess of requirements over resources 193 Statement of cash resources and requirements — Continued. TIME DRAFTS RECEIVABLE AND TIME DEPOSITS WITH BANKS AND TRUST COMPANIES (I. C. C. ACCOUNT 710). Date receivable. Receivable from— Amount. I hereby certify that the above statement is correct. ,191 (Place and date.) Title. INSTRUCTIONS. This statement shall be rendered as of the end of each week and shall be mailed as quickly as possible thereafter to " Treasurer, United States Railroad Administration, Interstate Commerce Building, Washington, D. C." Particulars of any large or unusual items included in items " O " or " Q," such as notes or funded debt maturing, etc., should be given in memorandum and attached to statement. If requested to telegraph statement, give name of com- pany, foi-m number and date of statement, code, and amounts, and mail copy of telegram and statement in confirmation. Supplement No. 1 to General Order No. 23. Washington, D. C, August 13, 1918. Effective with report for the week ending August 17, 1918, the following instructions shall govern the rendering of the Weekly Cash Report, Form T-5. (1) Where Federal treasurers have been appointed, their reports shall include only transactions affecting the cash controlled by them, in accordance with the provisions of General Order No. 37. Reports as to transactions affecting other (corporate) cash will not be required. (2) As and when Federal treasurers are appointed they shaU com- mence to render the reports to include only transactions affecting the cash controlled by them, in accordance with the provisions of General Order No. 37. Reports as to transactions affecting other (corporate) cash may then be cUscontinued. (3) Otherwise the reports shall continue to be made up as at present. (4) These instructions also, of course, apply to all acting Federal treasurers, as well as to the treasurers whose nominations have been confii'ined. A supply of revised forms will be sent you. W. G. McAdoo, Director General of Railroads. 105889°— 19 13 - 194 General Order No. 24. Washington, D. C, May 16, 1918. On April 30 a telegram was sent to carriers, instructing them not to renew any expiring fire insurance policies on property in Federal control, and not to take out any new fire insurance policies upon such property. It was provided that carriers might call attention to cases calling for exceptional treatment. A letter was sent to the carriers confirming this telegram, and the letter suggested care for fire pre- vention in terms similar to the last paragraph of this order. It is desired to extend the instructions to other insurance than fire insurance, excepting only bonds or policies insuring fidelity of em- ployees in handling funds. Carriers, therefore, are now instructed not to renew any expiring insurance of any character covering property in Federal control or any liability in connection with the operation or use of anv such property, or liability for property transported or stored by carriers under Federal control, and not to take out any new policies, or place any additional or new risks under existing policies, of such insur- ance, except that this order shall not relate to bonds or policies in- suring the fidelity of employees in handling funds. Such fidelity bonds or policies shall be continued, and proper provision made for any necessary changes, as heretofore. Carriers may present to the Director General any special circumstances which they believe call for exceptional treatment. If the termination of insurance in accordance with this order re- sults, as to any particular property, in the discontinuance by the in- surance company of inspection or other measures for prevention of loss, it will be desirable to adopt proper substitute therefor, and the carrier shall make reasonable and proper temporary provision for such inspection or other preventive measures, reporting its action to this office. W. G. McAdoo, Director General of Railroads. General Order No. 25. Washington, May 20., 1918. Effective July 1, 1918, the collection of transportation charges by carriers under Federal control, for services rendered, shall be on a cash basis, and, effective as of that date, credit accommodations then in existence which may be in conflict with the following regula- tions shall be canceled. 1. Tickets shall be sold only for cash in advance of service. Bag- gage charges are subject to the same rule as tickets, except C. O. D. 195 baggage and storage charges, which must be paid in cash before de- livery. 2. In cases where the enforcement of this rule with respect to freight will retard prompt forwarding or delivery of the freight or the prompt release of equipment or station facilities, carriers will be permitted to extend credit for a period of not exceeding forty-eight (48) hours after receipt for shipment of a consignment if it be pre- paid, or after delivery at destination if it be a collect consignment, provided the consignor if it be a prepaid consignment, or the con- signee if it be collect, file a surety bond either individual or corpor- ate, in an amount satisfactory to the treasurer of the carrier. The form of such bond shall be prescribed by the chief legal officer of the individual carrier, conditioned upon and providing for payment of all charges within forty-eight (48) hours after forwarding or deliv- ery of the freight. Upon receipt and acceptance of such bond a car- rier may accept and forward prepaid consignments or may deliver collect consignments in advance of payment of all charges thereon to the amount covered by the bond. Failure to pay such charges within the time prescribed will automatically cancel such credit. 8. Treasurers of individual carriers are required to arrange and conduct all matters relating to such credits. They shall designate the amount, and accept or reject the surety offered. Bonds may be required and accepted for individual consignments or blanket bonds may be accepted from individual shippers or consignees to cover all of their consignments for a given period; the period of the credit in such cases shall, however, be limited to forty-eight (48) hours on each shipment as prescribed in the preceding paragraph. 4. In case of any question as to the accuracy of charges, bills must be paid as rendered and claims presented for alleged errors. This will not prevent adjustments by agents of obvious errors. 5. Freight consigned to " order " or to " order notify " shall be delivered only upon surrender to the agent of the carrier of the original bills of lading for such freight, and the payment of the freight charges thereon as herein provided. Provided, however, if such bill of lading be lost or delayed the freight may be delivered in advance of surrender of the bill of lading upon receipt by the car- rier's agent of a certified check for an amount equal to one hundred and ten (110) per cent of the invoice, or upon receipt of a surety bond either individual or corporate, acceptable to the treasurer of the carrier, in an amount for twice the amount of the invoice. 6. The extension or creation of local collection bureaus or agencies will be authorized by the Director of Public Service and Accounting, as and when such bureaus may be found to be necessary or expedient. 7. Bonding or underwriting arrangements with respect to credits extended, now in effect by individual carriers, shall be discontinued 196 as of July 1, 1918, or as soon thereafter as existing contracts are ter- minable. 8. Advice of the foregoing regulations shall be promptly given to all to whom credit accommodations are now given to the end that the regulations may be put into effect at the time specified with as little inconvenience as possible. 9. Payment of transportation charges by check will be considered as a payment in cash if the person, firm, or company signing or in- dorsing it is known to the agent to be fully reliable. Checks are not to be taken or cashed by agents under any circumstances, except for transportation charges. 10. Until otherwise ordered, the foregoing rules will not apply to transportation service rendered other departments of the Federal Government. W. G. McAdoo, Director General of Railroads. General Order No. 25-A. Washington, June 12^ 1918. The effective date of General Order No. 25, which provides for placing the collection of transportation charges on a cash basis on and after July 1, 1918, is hereby postponed to August 1. 1918. The rules governing the collection of transportation charges pre- scribed in General Order No. 25 are hereby amended and will not apply to transportation service rendered to — The various departments and bureaus of the United States Gov- ernment. The nations allied with the United States in war. The various States of the United States. The counties and municipalities of such States. The District of Columbia and Alaska. The American Red Cross. W. G. McAdoo. Director General of Railroads. General Order No. 26. Washington, May 33, WIS. Whereas the act of Congi-ess approved March 21, 1918, entitled " An act to provide for the operation of transportation systems while under Federal control," provides (sec. 10) "That carriers while under Federal control shall be subject to all laws and liabilities as common carriers, whether arising under State or Federal laws or at 197 common .law, except in so far as may be inconsistent with tlie pro- visions of this act * * * or with any order of the President. * * * But no process, mesne or final, shall be levied against any property under such Federal control ; " and authorizes the Presi- dent to exercise any of the powers by said act or theretofore granted him with relation to Federal control through such agencies as he might determine; and AVhereas by a proclamation dated March 29, the President, acting under the Federal control act and all other powers him thereto enabling, authorized the Director General, either personally or through such divisions, agencies, or persons, or in the name of the President, to issue any and all orders which may in any way be found necessary and expedient in connection with the Federal con- trol of systems of transportation, railroads, and inland waterways as fully in all respects as the President is authorized to do, and generally to do and perform all and singular acts and things and to exercise all and singidar the powers and duties which in and by the said act, or any other act in relation to the subject hereof, the Presi- dent is authorized to do and perform ; and Whereas it appears that there are now pending against carriers under Federal control a great many suits for personal injury, freight and damage claims, and that the same are being passed for trial by the plaintiffs in States and jurisdictions far removed from the place where the persons alleged to have been injured or damaged resided at the time of such injury or damage, or far remote from the place where the causes of action arose ; the effect of such trials being that men operating the trains engaged in hauling war materials, troops, munitions or supplies, are required to leave their trains and attend court as witnesses, and travel sometimes for hundreds of miles from their work, necessitating absence from their trains for days and sometimes for a week or more; which practice is highly prejudicial to the just interests of the Government and seriously interferes with the physical operation of railroads; and the practice of trying such cases during Federal control in remote jurisdictions is not necessary for the protection of the rights or the just interests of plaintiffs: It is therefore ordered, That upon a showing by the defendant car- rier that the just interests of the Government would be prejudiced by a present trial of any suit against any carrier under Federal control, which suit is not covered by General Order No. 18 and which is now pending in any county or district other than where the cause of action arose or other than in which the person alleged to have been injured or damaged at that time resided, the suit shall not be tried during the period of Federal control: Provided, If no suit on the same cause of action is now pending in the county or district where the cause of action arose, or where the person injured or damaged at 198 that time resided, a new suit may, upon proper service, be instituted therein ; and if such suit is now barred by the statute of limitations, or will be barred before October 1, 1918, then the stay directed by this order shall not apply unless the defendant carrier shall stipulate in open court to waive the defense of the statute of limitations in any such suit which may be brought before October 1, 1918. This order is declared to be necessary in the present war emergency. In the event of unnecessary hardship in any case, either party may apply to the Director General for relief, and he will make such order therein as the circumstances may require consistent with the public interest. This order is not intended in any way to impair or affect General Order No. 18 as amended by General Order No. 18- A. W. G. McAdoo, Director General of Railroads. General Order No. 27. preamble. Washington, May 25, 1918. In promulgating this order I wish to acknowledge the patriotic service so unselfishly rendered by the Railroad Wage Commission, consisting of Messrs. Franklin K. Lane, Charles C. McChord, J. Harry Covington, and William E. Willcox in connection with the important question of wages and hours of service of railroad em- ployees which I referred to them by my General Order No. 5, dated January 18, 1918. This commission took hold of the task with great energy and devotion and has dealt with the entire subject in a thoroughly sympathetic spirit. Manifestly in a matter of such magnitude and complexity it is im- possible to find any general basis or formula which would correct every inequality and give satisfaction to every interest involved. But the commission has made an earnest effort to do justice to all con- cerned. I have felt obliged, however, to depart from its recommen- dations in some particulars. With respect to hours of service the commission says : Manifestly, therefore, at this time, when men must be constantly taken from the railroads, as from all other industries, to fill the growing needs of the Nation's Army, hours of labor can not be shortened and thereby a greater number of men be required for railroad work. The Nation can not, in good faith, call upon the farmers and the miners to work as never before and press themselves to unusual tasks, and at the same time so shorten the hours of railroad men as to call from farm and mine additional and unskilled men to run the railroads. While the commission is strongly disposed to a standard 199 day in so far as the nature of the service will permit it. its firm judgment con- sequently is that the existing hours of service in effect on the railroads should be maintained for the period of the war. But with this we earnestly urge that a most exhaustive study be made of this matter of hours of service, not \\-ith a view to the adoption of some arbi- trary and universal policy which shall have no I'egard to the kind of work done, or to the effect upon the railroad service, but with these very considera- tions in mind. And we have gone into this matter far enough to justify to ourselves the belief that by the steady application of such sympathetic consid- eration the railroad service may be improved and at the same time fuller opportunity be given for lifting a burden that falls disproportionately upon some of the less favored of the railroad workers. The commission also reached the conclusion that as to overtime "the existing rules and conditions of payment should not be dis- turbed during the period of the war." The commission has pointed out that this is not the time for any experiments which might lessen the tons of freight hauled and the number of passengers carried when the urgent and serious necessities of the war compel sacrifices from all, and that the adoption of any plan which would prevent the Government from working its men as long as they have been in the habit of working under private employers would be to take ad- vantage of the grave war necessities of the Government and to em- barrass it in carrying forward essential operations of the war at a time when the need of service was never greater and the ability to call in outside men is seriously impaired. There has never been a time when the public interest demanded more urgently the devotion and unselfish service of all classes of railroad employees. I agree with the commission that it is not practicable at this time, when the war is calling upon every class of loyal citizens for service and sacrifices, to reduce the actual hours of labor to eight in every line of railroad work. Xevertheless I am convinced that no further, inquiry is needed to demonstrate that the principle of the basic eight-hour day is reason- able and just and that all further contentions about it should be set at rest by a recognition of that principle as a part of this decision. Recognition of the principle of the basic eight-hour day in railroad service is, therefore, hereby made. The question arises as to what further steps can and ought justly to be taken to strengthen the application of that principle, and when. This question must be solved in the light of the varied conditions of railroad employment and will have to be studied in detail by the Board of Railroad Wages and Working Conditions herein and hereby created and in the light of what is reasonably practicable under war conditions. Xo problem so vast and intricate as that of doing practical justice to the 2,000,000 railroad employees of the country can be regarded 200 as completely settled and disposed of by any one decision or order ; therefore the Board of Eailroad Wages and Working Conditions is hereby established and will take up as presented any phases of the general problem relating to any class of employees or any part of a class of employees which may justly call for further consideration. It is my earnest hope that railroad officials and railroad em- ployees will realize that their relations under Federal control are not based upon the old conditions of private management. Dissensions and disappointments should be forgotten and all should now remem- ber that they are not only serving their country in the operation of the railroads, but that upon the character, quality, and loyalty of that service depends in large measure our success in this war. It is an inspiring task — this task of putting upon a more just and equitable basis the wages and working conditions of loyal workers in railroad service — and I confidently expect the patriotic support and assistance of every railroad official and every railroad employee in ])erforming that task with credit to each other and with honor to their country. ORDER. Respecting the wages, hours, and other conditions of employment of the employees of the railroads hereinafter mentioned, it is hereby ordered : Article I. — Railroads Affected. This order shall apply to the employees of the folloAving rail- roads : Alabama & Vicksburg Ry. Co. Alabama Great Southern 11. H. Co. Ann Arbor R. R. Co. Arizona & New Mexico Ry. Co. Arizona Eastern R. R. Co. Atchison, Topelja & Santa Fe Ry. Co. Atlanta & West Point R. R. Co. Atlanta, Birmingham & Atlantic ■ Ry. Co. Atlantic Coast Line R. R. Co. Atlantic & St. Lawrence R. R. Co. Atlantic City R. R. Co. Baltimore & Ohio R. R. Co. Bangor & Aroostook R. R. Co. Bessemer & Lake Erie R. R. Co. Boston & aiaine R. R. Buffalo & Susquehanna R. R. Corpora- tion. Buffjilo, Rochester & Pittsburg Ry. Co. Carolina, Clinchfleld & Ohio Ry. Central of Georgia Ry. Co. Central New England Ry. Co. Central R. R. Co. of New .Jersey. ( "eutral Vermont Ry. Co. Charleston & Western Carolina Ry. Co. Chesapeake & Ohio Ry. Co. Chicago & Alton R. R. Co. Chicago & Eastern! Illinois R. R. «"o. Chicago & Erie R. R. Co. Chicago & North Western Ry. Co. Chicago, Burlington & Quincy R. R. Co. per hour. per hour. per hour. per hour. 50 65.00 68 80.25 86 95.75 104 111.00 50.5 65.25 68.5 80.75 86.5 96.00 104. 5 111.25 51 • 65. 75 69 81.25 87 96. 50 105 111.75 51.5 66.25 69.5 81.50 87.5 97.00 105. 5 112.25 52 66.50 70 82.00 88 97.25 106 112. 75 52.5 67.00 70.5 82. 50 88.5 97.75 106.5 113. 00 53 67.50 71 83. 00 89 98.25 107 113.50 53.5 68.00 71.5 83.25 89.5 98.50 107.5 114.00 54 68.25 72 83.75 90 99.00 108 114. 25 54.5 68.75 72.5 84.25 90.5 99.50 108.5 114. 75 55 69.25 73 84. 50 91 99.75 109 115.25 55.5 69.75 73.5 85.00 91.5 100. 25 109. 5 115. 75 56 70.00 74 85.50 92 100. 75 110 116.00 56.5 70. 50 74.5 86.00 92.5 101. 25 110.5 116. 50 57 71.00 75 86.25 93 101.50 111 117.00 57.5 71.50 75.5 86.75 93.5 102. 00 111.5 117. 25 58 71.75 76 87.00 94 102. 50 112 117. 75 58.5 72.25 76.5 87.50 94.5 102. 75 112.5 118. 25 59 72.75 77 88.00 95 103. 25 113 118. 50 59.5 73.00 77.5 88.25 95.5 103. 75 113.5 119. 00 60 73.50 78 88.75 96 104. 25 114 119. 50 60.5 74.00 78.5 89.25 96.5 104. 50 114.5 119. 75 61 74.50 79 89.75 97 105. 00 115 120. 00 61.5 74.75 79.5 90.00 97.5 105. 50 115.5 120.00 62 75.25 80 90.50 98 106. 00 116 120. 00 62.5 75. 75 80.5 91.00 98.5 106. 25 116.5 120. 00 63 76.00 81 91.50 99 106. 75 117 120.00 63.5 76.50 81.5 91.75 99.5 107. 25 117.5 120.00 64 76.75 82 92. 25 100 107. 50 118 120. 00 64.5 77.25 82.5 92.75 100.5 108. 00 118.5 120. 00 65 77.75 83 93.00 101 108. 25 119 120.00 65.5 78.25 83.5 93.50 101.5 108. 75 119.5 120.00 66 78.50 84 94.00 102 109. 25 120 120. 00 6C.5 79.00 84.5 94.50 102.5 109. 75 67 79.50 85 94.75 103 110. 00 67.5 79.75 85.5 95.25 103.5 110. 50 While it is expected that the Board of Railroad Wages and Work- ing Conditions hereinafter created shall give consideration to all questions of inequality as between individuals and classes of em- ployees throughout, sufficient information is available to justify certain conclusions with respect to the mechanical crafts, and in the case of machinists, boilermakers, blacksmiths, and other shop mechanics who have been receiving the same hourly rates, the in- creases named in this order shall apply, with a minimum wage of 55 cents per hour. It is recognized that this may still leave among shop employees cer- tain inequalities as to individual employees, to which the Board of Railroad Wages and Working Conditions will give prompt con- sideration. 105889°— 19- -14 210 For common labor paid by the hour, the scale named herein shall apply, with the provision, however, that as a minimum, 2^ cents per hour will be added to the rates paid per hour, as of December 31, 1917. METHOD OF APPLYING INCREASES TO HOUBLT RATES. 1. Machinist worked in January, 1918, 8 hours per day, 27 days, total 216 hours straight time. The rate of pay for this position in December, 1915, was 34 cents per hour ; new rate under this order 48 cents per hour, but with minimum rate of 55 cents per hour as herein ordered will receive $118. 80 In January, 1918, his rate of pay was 37i cents per hour, for 216 hours, equals 81. 00 Difference 1 month 37.80 On basis of working same amount straight time each month for five months (Jan. 1 to May 31) 189.00 Also worked in same period 90 hours overtime at time and one- half, new 55 cents minimum rate, or 82^ cents, equals $74. 25 Was paid 56J cents (time and one-half) 1 50.63 23. 62 Balance due January 1 to May 31, 1918 212. 62 2. Machinist worked in January, 1918, 10 hours per day, 2G days, total 260 hours straight time. The rate of pay for this position in 1915 was 34 cents per hour ; new rate under this order, 48 cents per hour, but with minimum rate of 55 cents per hour as herein ordered will receive $143.00 In January, 1918, his rate of pay was 37i cents per hour, 260 hours equals 97. 50 Difference 1 month 45.50 On basis of working same amount of straight time each month for 5 months (Jan. 1 to May 31) $227.50 Also worked in same period 90 hours overtime at pro rata rate, new 55-cent minimum rate, equals $49. 50 Was paid at 37i-cent rate pro rata overtime or 33. 75 15. 75 Balance due Jan. 1 to May 31, 1918 243. 25 3. Machinist " D " was employed in the same shop in December, 1915, and in 1918 on the same class of work. His hourly rate in December, 1915, was 35 cents for 9 hours, 26 days a month. He Avas paid for overtime and Sunday work at time and one-half. On January 1, 1918, his hours were reduced to 8 and his rate increased to 40 cents. The new hourly rate applicable to his 1915 rate, viz: 49^ cents being less than the minimum of 55 cents, his new rate will be 55 cents per hour. In 1918, from January 1 to May 31, he 211 worked 234 hours per month or an average of one hour overtime daily on the 1918 schedule. This for five months gives him 130 hours overtime. He has been paid as follows : 1.040 hours straight time, at 40 cents $416.00 130 hours overtime, at 60 cents 78.00 Total -194. 00 His back pay will be computed as follows : 1.040 hoiirs straight time, at 5-5 cents 572.00 130 hours overtime, at 82i cents 107.25 Total L G79. 25 Deduct payment at 1918 rates 494. 00 Back pay tlue 185. 25 and his future rate per hour will be 55 cents. 4. In the case of employee " E," who was employed in a shop where the rate for his position was 35 cents per hour for 8 hours' work in 1915, with time and one-half for overtime, but in the same position and same shop with the same hours in 1918 his rate is 45 cents per hour : his earnings in 1915 in the standard 208-hour month would be $72.80 per month, and he would be entitled to the new hourly rate of 491 cents per hour. His straight time and overtime earnings and back pay would be computed in exactly the same manner as machinist " D." The principles illustrated will apply to all men paid by the hour, whatever their occupation may be. Section D. — Rates of wages of railroad employees paid upon piece- work hosts. METHOD OF APPLYIXCx INCREASES TO PIECE RATES. 1. The pieceworker shall receive for each hour worked, the same increase per hour as is awarded to the hourly worker engaged in similar employment in the same shop. 2. If the hourly rate has been increased since 1915 to an amount greater than the increase herein fixed, then the higher rate shall prevail. 8. Where there was no piece rate for an item or operation in the piece-rate schedule of 1915, adjust the current price by such an amount as a similar item or operation has been increased or decreased since December 31, 1915, or as near such a plan as practicable. 4. It is understood that the application of this order shall not, in any case, operate to reduce current earnings. 212 0. When a pieceworker Avorks overtime or undertime, he shall receive that proportion of the increase provided in the schedule which the time actually vvorked bears to the normal time in the position. 6. Overtime is not to be considered solely as the number of hours employed in excess of the normal hours per month in the position, but rather the time employed in excess of the normal hours per day. 7. Employee " F " was employed under a piecework schedule in a shop where the basic hourly rate was 35 cents for eight hours, with time and one-half for overtime. This rate under the plan illus- trated above will be increased to 49| cents per hour. Difference, 1-i-J- cents. Regardless of the schedule of piece rates under which he is paid, under this order " F "" will be entitled to receive 14^ cents per hour in addition to his piecework earnings for every hour Avorked in 1918 unless the hourly rate shall in the interim have been raised and a l^roportionate increase made in the piecework schedule. For example: Assume that " F '' made $90 in December, 1915, at his piecework. At the hourly rate he Avould have earned only $72.80, and his hourly rate must therefore be increased to 49^ cents. If, in January, 1918, he has attained sufficient skill to earn $100 on the same piecework schedule, he Avill be entitled to receive, never- theless, 14^ cents per hour for each hour of straight time worked, and for each hour of overtime, 212 cents additional (if time and one-half for overtime is in effect). Assume that in the five months, January 1 to May 31, " F '' has worked 1,040 hours straight time, and 130 hours overtime, and has, at his piecework schedule earned $500. He will be entitled, neverthe- less, to receive as back pay the folloAving amount : 1,040 hours at 14i cents per hour if 150. 80 130 hoxirs at 21f cents per hour 28.28 Total 179.08 But if in January, 1918, the basic hourly rate had been increased to 50 cents, and this increase had been correspondingly expressed in his piecework schedule, he would be entitled to no back pay. If, on the other hand, the hourly rate had been increased from 35 cents in 1915 to 45 on January 1, 1918, and this increase had been expressed in a corresponding increase in the piecework schedule, then " F " would be entitled to receive back pay at 4^ cents per hour for straight time and 6f cents per hour overtime. If the practice in the shop, however, had been to pay pro rata for overtime, then the rate for such overtime since January 1, 1918, Avould be pro rata at 4^ cents, or 14^ cents per hour, according to whether piece rates had been or had not been increased. 8. Employee's December, 1915, rate was 38^ cents; which rate in this order for 8 hours per day entitles him to 54^ cents per hour. 213 His basic rate had. by January 1. 1918, been raised to 42^ cents per liour. PieceAvork rates had not been raised in the interval. This man earned in ii08 hours $100. He is entitled to a raise of 11!^ cents per hour. 11 J t-euts X 208: 1 month $24.44 n months - 122. 20 The following rates will apply "per day" or its established equiva- lent in "miles": Section E. — Rates of wages of railroad employees paid iipon mileage basis. PASSENGER ENGINEERS. Old. New. . Old. New. Old. New. Old. New. $4.10 $4. 56 $4.53 $5.04 $4.95 $5.51 ' $5. 55 $6. 17 4.15 4.62 4.55 5.06 5.00 5.56 I 5.65 6.29 4.20 4.67 4.60 5.12 5.05 5.62 5.90 6.56 4.25 4.73 4.65 5.17 5.13 5.71 6.00 6.68 4.30 4.78 4.70 5.23 j 5. 15 , 5.73 6.05 6.73 4.35 4.84 4.75 5.28 5.28 5.87 6.25 6.95 4.40 4.90 4.78 5.32 ! 5.35 5.95 6.30 7.01 4.45 4.95 4.80 5.34 1 5.40 6.01 6.50 7.23 4.50 5.01 4.90 5.45 ; 5.53 6.15 7.00 7.79 $1.91 2.25 2.33 2.34 2.40 2.42 2! 45 2.50 2.51 2.55 $2.46 2.90 3.00 3.01 09 12 15 22 23 $2.60 2.62 2.65 2.69 2.70 2.75 2.76 2.78 2.80 $3.35 3.37 3.41 3.46 3.48 3.64 3.55 3.58 3.61 $2.84 2.85 2.90 2.95 3.00 3.05 3.10 3.15 3.20 $3.66 3.67 3.73 3.80 3.86 3.93 3.99 4.06 4.12 $3. 30 3.35 3.40 3.45 3.60 3.75 4.00 4.15 4.25 PASSENGER TRAINMEN. $4.25 4.31 4.38 4.44 4.64 4.83 5.15 5.34 5.47 PASSENGER CONDUCTORS. $2.50 2.60 $2.89 3.00 $2.68 2.75 $3. 10 I 3.18 ; • 1 $2.90 $3.35 ! ! 1 $3.47 $4.01 PASSENGER BAGGAGEMEN. $1.40 1.45 $1.94 2.00 $1.49 1.54 $2.06 2.13 $1.61 1.65 1 $2.23 ' 2.28 $1.70 2.00 $2.35 2.77 $1.35 1.43 1.46 $1.88 i 1.99 i 2.04 ! $1.47 1.49 $2. 05 2.08 $1. 50 1.55 $2.09 2.16 $1.60 1.87 $2.23 2.61 214 Section E. — Rates of wages of railroad employees paid upon mileage basis — Con. FREIGHT ENGINEERS. Old. New. Old. New. Old. New. Old. New. $4.25 $4.91 $5.05 15.83 $5. 40 $6.24 $5. 90 $G. 81 4.50 . 5.20 5.06 5.84 5.43 6.27 5.95 G.87 4.70 5.43 5.10 5.89 5.45 6.29 1 5.995 G. 925 4.75 5.49 5.13 5.93 5.50 6.35 6.00 6.93 4.80 5.54 5.145 5.95 5.55 6.41 6.10 7.05 4.85 5. GO 5.15 5.95 5. 555 6.415 6.25 7.22 4.86 5. Gl 5.17 5.97 5. GO 6.47 6.50 7.51 4.87 5.62 5.20 6.01 5.61 6.48 6.75 7.80 4.88 5.64 5.25 6.06 5.65 6.53 6.80 7.85 4.89 5.65 5.28 6.10 5. 665 6.545 6.85 7.91 4.90 5.66 5.30 6.12 5.70 6.58 6.90 7.97 4.95 5.72 5.33 6.16 5. 75 6.64 6.95 8.03 4.97 5.74 5.35 6.18 5.83 6.73 ' 7.00 8.09 5.00 5.78 5.39 6.23 5.85 6.76 7.25 8.37 FREIGHT FIREMEN. $2.25 $3.02 $2.93 $3.93 $3.23 $4.34 $3. 75 $5.03 2.36 3.17 2.95 3.96 3.245 4.355 3.80. 5.10 2.45 3.29 3.00 4.03 3.25 4.36 3.90 5.24 2.47 3.32 3.01 4.04 j 3.30 4.43 3.905 5. 245 2.50 3.36 3.03 4.07 3.35 4.50 3.95 5.30 2.56 3.44 i 3.04 4.08 3.40 4.56 4.00 5.37 2.59 3.48 3.05 4.09 i 3.45 4.63 4.05 5.44 2.60 3.49 3.07 4.12 3.465 4.65 4.10 5.50 2.70 3.62 3.10 4.16 3.50 4.70 4. 125 5. 535 2.75 3.69 3.13 4.20 3.55 4.77 4.18 5.61 2.78 3.73 3.15 4.23 3.57 4.79 4.25 5.71 2.81 3.77 3.16 4.24 I 3.60 4.83 4.30 5.77 2.85 3.83 3.19 4.28 ! 3.63 4.87 4.50 6.04 2.87 3.85 3.20 4.30 ' 3.65 4.90 4.55 G. 11 2.90 3.89 3.22 4.32 3.70 4.97 FREIGHT CONDUCTORS. $2.31 $2.78 i $4.24 $5.11 $4.54 $5. 47 $4. 88 $5.88 2.90 3.49 4.2b 5.12 4.55 5.48 4.96 5.98 3.46 4.17 4.27 5.15 4.63 5.58 5.04 6.07 3.63 4.37 I 4.38 5.28 4.64 5.59 5.08 6.12 3.85 4.64 ! 4.40 5.30 4. 66 5.62 5.10 6. 15 3.90 4.70 4.42 5.33 4.74 5.71 5.14 6. 19 3.975 4.79 4.43 5.34 4.77 5.75 5.21 6.28 4.00 4.82 4.48 5.40 4.80 5.78 5.67 6.83 4.10 4.94 4.50 5.42 4.83 5.82 5.69 6.86 4.13 4.98 4.51 5.43 4.84 5.83 6.12 7.37 4. 165 5.02 4.52 5.45 4.86 5.86 6.45 7.77 4.18 5.04 4.53 5.46 4.87 5.87 7.09 8.54 215 Section E.— Rates of loages of milroad emploijees pnid upon mileage basis — Con. FREIGHT BRAKEMEN AND FLAGMEN. Old. New. Old. New. Old. New. Old. New. $1.60 $2.23 $2.70 $3.77 $3.02 $4.21 $3.48 $4.85 1.89 2.64 2.72 3.79 3.10 4.32 3.60 5.02 1.93 2.69 2.75 3.84 3.13 4.37 3.62 5.05 2.14 2.99 2.78 3.88 3.14 4.38 3.66 5.11 2.25 3.14 2.80 3.91 3.15 4.39 3.707 5.17 2.33 3.25 2.82 3.93 3.20 4.46 3.71 5.18 2.40 3.35 2.83 3.95 3.21 4.48 3.93 5.48 2.42 3.38 2.85 3.98 3.25 4.53 4.24 5.91 2.48 3.46 2.88 4.02 3.29 4.59 4.26 5.94 2.60 3.63 2.95 4.12 3.33 4.65 4.62 6.44 2.62 3.65 2.98 4.16 3.41 4.76 4.96 6.92 2. 65 3.70 2.99 4.17 3.46 4.83 5.37 7.49 2.67 3.72 3.00 4.19 " Old " rates are those of December, 1915. If there were mileage rates in effect in December, 1915, which are not included in the above tables, they shall be increased in accord- ance with the following percentages: Per cent. Road passenger engineers and motormen Hi Road passenger firemen and helpers 28? Road passenger conductors 15J Road passenger baggagemen 38:^ Road passenger brakemeu and flagmen 39* Road freight engineers and motormen 15^ Road freight firemen and helpers 34^ Road freight conductors 20^ Road freight brakemen and flagmen 39* JNIETHOD or APPLYING INCREASES TO IVIILEAGE BASIS. 1. Rates for overtime as now in effect, whether providing for pro rata basis or in excess thereof, shall be increased by same per- centage as straight time rates. 2. Miles run, in excess of the established equivalent of a day (or of a month where such basis prevails) shall be paid for pro rata. 3. If any increase has been made in the mileage rates of employees paid on that basis in December, 1915, it will be understood that the per cent of increase allowed by this order is inclusive of such interim increases and that the new rate is computed from the base rates of December, 1915. 4. Example (1) : Engineer " G," passenger service, received $1.25 per day of one hundred miles in 10 hours in December, 1915. Ac- cording to this plan, although in 1918 this rate was $4.25 per hundred miles in 8 hours, the rate will be increased 11^ per cent to $4.73 per 100 miles ($4.7281 equalized as $4.73). He will be entitled to back pay for every 100 miles run at the rate of 48 cents per 100 miles. 216 Example (2) : Conductor, through freight : 2,950 miles at 4 cents, at new rate, would entitle him to 4.82 cents, or $142. 19 He was paid ; IIS. 00 Leaving to he paid 24. 19 He made 26 hours and 10 minutes overtime, equivalent, on basis of 122 miles per hour, to 327 miles, which, at the increased rate of 4.82 cents per mile, entitles him to $15. 76 Was paid, at 4 cents per mile 13.08 A difference of 2. G8 One month 20. 87 Five months 134. 35 This principle will apply to all employees of the train and engine service who are paid on the mileage basis. There are some railroads in the United States upon which men in the train and engine service are paid on a monthly wage. Such employees Avill be entitled to the increased rates named in Article 2, section A. 5. Since the application of the increases hereby granted will tend in individual cases to give increases greater than is appropriate or necessary to those train and engine men who make abnormal amounts of mileage and who, therefore, make already abnormally high monthly earnings, the officials of each railroad shall take up with the respective committees of train and engine men the limitation of mileage made per month by emploj^ees paid upon a mileage basis, so as to prevent employees now making such abnormal mileage profiting by the wage increases herein fixed greatly in excess of em- ployees habitually making a normal amount of mileage. It shall be understood that any such limitation of mileage so arrived at shall not preclude the officials of a railroad from requiring a train or engine man to make mileage in excess of this limitation when the necessities of the service require it. The officials of each railroad will report to the Regional Director such arrangements agreed upon and any cases of failure to reach such agreements. Section F. — General rules for application of wage increases. 1. In the application of the scale the wage runs with the place. If in the past two years an employee has been promoted, his new wage is based upon the rate of increase applicable to the new sched- ule governing the position to which he has been promoted. 2. In applying these percentages to the hourly, daily, monthly, or mileage rates for December, 1915. in order to determine the rates 217 to he applied, beginning January 1, 1918, each decimal fraction over 1 per cent shall be equalized as follows : Less than one-fourth of 1 per cent, as one- fourth of 1 per cent. Over one-fourth of 1 per cent, but less than one-half of 1 per cent, as one-half of 1 per cent. Over one-half of 1 per cent, but less than three-fourths of 1 per cent, as three-fourths of 1 per cent. Over three-fourths of 1 per cent, as 1 per cent. 3. These increases are to be applied to the rates of wages in effect on December 31, 1915. They do not represent a net increase at this time. 4. As to the employee who may have been promoted since Decem- ber 31, 1915, his increase will be based upon the rate of his present position as of December 31, 1915. 5. As to the employee who has been reduced in position, his increase will be based upon the rate of his present position as of December 31, 1915. 6. The new rates named herein, where they are higher than the rates in effect on January 1, 1918, will be applied to the occupants of positions that carried the rates in December, 1915. 7. In those cases where increases have been made by the railroads since December 31, 1915, in excess of the amounts herein ordered, present wages shall apply, for in no instance shall the application hereof operate to reduce present rates of pay. 8. Reductions in hours between December 31, 1915, and January 1, 1918, are not to be regarded as increases in pay. 9. The wage increases provided for herein shall be effective as of January 1, 1918, and are to be paid according to the time served to all who were then in the railroad service or who have come into such service since and remained therein. The proper ratable amount shall also be paid to those who have been for any reason since January 1, 1918, dismissed from the service, but shall not be paid to those who have left it voluntarily. Men who have left the railroads to enter the Army or Navy shall be entitled to the pro rata increases accruing on their wages up to the time they left, and the same nde shall apply to those who have passed from one branch of the railroad service or from one road to another. 10. This order applies to foremen, chief clerks, and others em- ployed in a supervisory capacity, as well as to their subordinates. 11. This order shall be construed to apply to employees of rail- roads operating ferries, tugboats, lighters, barges, and any other floating equipment operated as terminal or transfer facilities, but shall not be construed as applying to railroad employees on cargo and passenger carrying equipment on lakes, rivers, or in coastwise or ocean traffic. 218 12. The provisions of this order will not apply in cases where amounts less than $30 per month are paid to individuals for special service which takes only a portion of their time from outside employ- ment or business. 13. Office boys, messengers, chore boys, and similar positions filled by employees who are under 18 years of age will receive the following increase per month : Twenty dollars increase per month where December, 1915, rate was from $30 to $45 per month. Fifteen dollars increase per month where December, 1915, rate was from $20 to $30 per month. Ten dollars increase per month where December, 1915, rate was less than $20 per month. Article III. — Rules Governing Conditions or Employment. Section A.^ — The haste eight-hour day. The principal of the basic eight-hour day is hereby recognized. Where employees are paid upon a daily or monthly basis, the new compensation herein established will apply to the number of hours which have heretofore constituted the actual day's work. For ex- ample, where an actual day's work has been 10 hours, the new com- pensation will cover the eight basic hours and two hours overtime. Additional overtime will be paid pro rata. METHOD or APPLYING BASIC EIGHT-HOUR-DAY RULES. 1. Position which in December, 1915, paid $2 per 9-lioiir day : Old rate, $2 per day. New rate, $2.51 for 8-hour basic day. Overtime, 31.4 cents per hour. New rate, $2.83 for 9-hour service ; 83 cents increase. 2. Position which in December, 1915, paid $2.40 per 10-hour day. Old rate, $2.40 per day. New rate, $2.70 for 8-hour basic day. Overtime, $0.68—2 hours, at 34 cents per hour. New rate, $3.38 for 10-hour service ; 98 cents increase. 3. Position which in December. 1915, paid $75 per month, working 10 hours per day for 26 working days: Old rate, $75 per month. New rate, $84.60 per month basic 8-hour day. Overtime, $21.15—52 hours, at 40.67 cents per hour. New rate, $105.75 for same service ; increase, $30.75. 4. Position which in December, 1915, paid $100 per month, w.irkiug 11 hours per day for 31 working days: Old rate, $100 per month. New rate, .$95.82 per month basic S-hour day. Overtime. $35.93—93 hours, at 38.64 cents per hour. New rate, $131.75 for same service; increase, $31.75. 219 Sectiox B. — Rate8 of pay for overtime. This order shall not affect any existing agreements or practices for the payment of higher rates of pay for time worked in excess of any standard day. Time worked in excess of the basic eight-hour day hereby established will, when there is no existing agreement or prac- tice more favorable to the employee, be paid on a prorata basis, as indicated in section A of this article. Section C. — No reduction in total increase. Pending consideration by the Board of Railroad Wages and Work- ing Conditions hereinafter provided for, no reduction in the actual hours constituting a day's work shall operate to deprive any em- ployee, paid by the day or month, of the total increase in pay granted him by this order. Article IV. — Payments for Back Time. ' Each railroad will, in payments made to eiiiployees on and after June 1, 1918, include these increases therein. As promptly as possible, the amount due in back pay from Jan- uary 1, 1918, in accordance with the provision of this order, will be computed and payment made to employees separately from the regular monthly payments, so that employees will know the exact amount of these back payments. Recognizing the clerical work necessary to make these computa- tions for back pay and the probable delay before the entire period can be covered, each month, beginning with January, shall be com- puted as soon as practicable and, as soon as completed, payment shall be made. Article V. — Employment of Women. When AYomen are employed, their working conditions must be healthful and fitted to their needs. The laws enacted for the govern- ment of their employment must be observed and their pay, when they do the same class of work as men, shall be the same as that of men. Article VI. — Colored Firemen, Trainmen, and Switchmen. Effective June 1, 1918, colored men employed as firemen, train- men, and switchmen shall be paid the same rates of wages as are paid white men in the same capacities. Back pay for period January 1, 1918, to May 31, 1918, will be based only upon the increases provided in Article II of this order for such positions. Back payments will not apply to the further in- creased rate made effective by this article. 220 Article VII. — Board or Railroad Wages and Working Conditions. There is hereby created a Board of Railroad Wages and Working Conditions which shall consist of the following members: J. J. Dermod}^, F. F. Gaines, C. E. Lindsey, W. E. Morse, G. H. Sines, A. O. Wharton. This board shall at once establish an office at Washington, D. C, and meet for organization and elect a chairman and vice chairman, one of whom shall preside at meetings of the board. It shall be the duty of the board to hear and investigate matters presented by railroad employees or their representatives affecting — • 1. Inequalities as to wages and working conditions whether as to individual employees or classes of employees. 5. Conditions arising from competition with employees in other industries. 3. Rules and working conditions for the several classes of em- ployees, either for the country as a whole or for different parts of the country. The board shall also hear and investigate other matters affecting wages and conditions of employment referred to it by the Director General. This board shall be solely an advisory body and shall submit its recommendations to the Director General for his determination. Article VIII. — Interpretations or this Order. Railway Board of Adjustment No. 1 is authorized by article of General Order No. 13 to perform the following duty : Wages and hours, when fixed by the Director General, shall be incorporated into existing agreements on the several railroads, and should differences arise between the management and the employees of any of the railroads as to such incorporation, such questions of difference shall be decided by the Railway Board of Adjustment No. 1, when properly presented, subject always to review by the Director General. In addition to the foregoing, other questions arising as to the in- tent or application of this order in respect to the classes of employees within the scope of Railway Board of Adjustment No. 1 shall be submitted to such board, which board shall investigate and report its recommendations to the Director Genera]. Similar authority may be conferred on any additional Raihvay Board of Adjustment hereafter created. Decisions shall not be rendered by such boards until after approval by the Director General. Prior to the creation of additional Railway Boards of Adjustment to deal with questions as to the intent or application of this order as it affects any other class of employees, such questions, with respect to 221 such employees, shall be presented to the Director of the Division of Labor, United States Railroad Administration, Washington, D. C. W. G. ^IcAdoo, Director General of Railroads. Supplement No. 1 to General Order No. 27. Washington, June 10^ 1918. The following will be added as general rules to section F, Ar- ticle II : 14. For positions created smce December, 1915, the salaries will be readjusted so as to conform to the basis established in General Order No. 27, for positions of similar scope or responsibility. 15. "\Miere wages were increased through arbitration or other general negotiations, which cases were definitely closed out prior to December 1, 1915, but which for any reason were not put into effect until after January 1. 1916, the increases fixed by General Order No. 27 will be applied to such basis of wages as if they were in effect in December, 1915. W. G. McAdoo, Director General of Railroads. Supplement No. 2 to General Order No. 27. Washington, July J, 1918. The terms and conditions of the above o'rder will apply to the Pullman Company Operating Department, except that on account of the peculiar character of the employment of conductors, porters, and maids, in that provision is made for rest and sleep while actually on duty, it is impracticable to apply a basic eight -hour day to such service. It is therefore ordered that with respect to conductors, porters, and maids, the increases shall be upon the basis shown in Section A of Article Two relative to " monthly wages " ; but Article Three relative to basic eight-hour day will not be applicable thereto. W. G. McAdoo, Director General of Railroads. Supplement No. 3 to General Order No. 27. Washington, July 8, 1918. The following raihoads are hereby added to and made a part of Article I of General Order No. 27: A. Abilene & Southern. Ahnapee & Western Ry. Akron & Barberton Belt R. R. Akron, Union Passenger Depot Co. Albany Railroad Bridge Co. Allegheny Terminal Co. AUentown Terminal R. R. Alton & Southern Ry. 222 Arkansas Central R. R. Co. Arkansas & IMemphis Ry. Bridge & Ter- minal Co. Arkansas Western Ry. Co. Arminius Branch. Asheville & Craggy Mountain Ry. Asheville & Southern Ry. Ashland Coal & Iron Ry. Atchison & Eastern Bridge Co. Atchison Union Depot & R. R. Co. Atlantic & Yadkin Ry. B. Baltimore & Ohio Chicago Terminal R. R. Baltimore & Sparrows Point R. R. Baring Cross Bridge Co. Barre & Chelsea R. R. Bath & Hammondsport R. R. Battle Creek & Sturgis R. R. Bay City Belt Line R. R. Bay City Terminal Co. Beaumont & Great Northern R. R. Beaumont, Sour Lake & Western. Beaumont Wharf & Terminal Co. Bellingham & Northern Ry. Belt Ry. of Chicago. Bethel Granite Ry. Big Fork & International Falls Ry. Blue Ridge Ry. Boonville, St. Louis & Southern Ry. Boston Terminal Co. Bowling Green R. R. Brandon, Devils Lake & Southern Ry. Brooklyn Eastern District Terminal R. R. Brownwood North & South Ry. Co. Buffalo Creek R. R. Buffalo Union Terminal R. R. Butte, Anaconda & Pacific Ry. Co. Cairo & Thebes R. R. Calumet Western Ry. Camas Prairie R. R. Can. Sou. Bridge Co. Can. Southern R. R. Carolina & Northwestern Ry. Carolina & Tennessee Southern Ry. Centralia Eastern R. R. Central Indiana. Central Terminal Ry. Central Union Depot of Cincinnati, Ohio. Cherry Tree & Dixon\"il]e R. R. Chesapeake & Ohio Northern Rj'. Chesapeake & Ohio Ry. of Indiana. Chicago Heights Terminal Transfer R. R. Chicago Junction Ry. Chicago, Kalamazoo &, Saginaw R. R. (controlled by M. C. & N. Y. C. R. R.). Chicago, Kalamazoo & Saginaw R. R. (operated by Grand Trunk R. R.). Chicago & Kalamazoo Terminal Ry. Chicago, Milwaukee & Gary R. R. Chicago Pdver & Indiana. Chicago Union Station Co. Chicago & Western Indiana R. R. Cincinnati, Burnside & Cumberland River Ry. Cincinnati & Dayton R. R. The Cincinnati Inter-Terminal R. R. Cincinnati, Lebanon & Northern Ry. Cincinnati, Saginaw & Mackinaw R. R. Coal River Ry. Coeur D'Alene & Pend Oreille Ry. Colorado Springs & Cripple Creek Dist. Ry. Columbus, Findlay & Northern R. R. Connecticut River R. R. Connecting Terminal R. R. Copper Range R. R. The Covington & Cincinnati Elevated R. R. & Transfer & Bridge Co. Cumberland & Penna. R. R. Cumberland Ry. D. Dallas Terminal Ry. & Union Depot Co. Danville & Western Ry. Davenport, Rock Island & Northwestern Ry. Co. Dayton & Union R. R. Dayton Union Ry. Deep Creek R. R. Delta Southern Ry. Denison & Pacific Suburban Ry. Co. Denver Union Terminal Ry. Des Moines Union Ry. Des Moines Western Ry. Detroit, Bay City & Western Ry. Detroit & Huron Ry. Detroit Manufacturers R. R. Detroit River Tunnel Co. Detroit Terminal Ry. & Transportation Co. Detroit Terminal R. R. Detroit, Toledo & Milwaukee R. R. Direct Navigation Co. Dover & Rockaway R. R. Duluth & Superior Bridge R. R. 223 Duluth Terminal R. R. Dululh Union Depot & Transfer Co. Dunleith & Dubuque Bridge Co. E. Easton & Western R. R. East. St. Louis Belt R. R. East St. Louis & Carondelet Ry. East St. Louis Connecting Ry. East St. Louis National Stock Yards Co.— East St. Louis. East St. Louis & Suburban. Edgewater Connecting Ry. Edgewater Terminal R. R. Elk Horn & Beaver Valley Ry. Englewood Connecting Ry. Ensley Southern Ry. Erie Terminals R. R. Co. Escanaba & Lake Superior R. R. Evans\dlle & Indianapolis R. R. F. Farmer's Grain & Shipping Co.'s R. R. Fort Dodge, Des Moines & Southern R. R. Fort Smith Suburban R. R. Fort Smith & Van Buren R. R. Fort Street Union Depot Co. Fort Worth Belt R. R. Fort Worth Union Passenger Station Co. G. Galatin Valley R. R. Galveston, Houston & Henderson R. R. Gauley & Meadow River Ry. Gilmore & Pittsburg R. R. Grand Canyon Railway Co. Grand Rapids Terminal Co. ■ Grand Trunk Junction Ry. Grand Trunk ]\Iilwaukee Car Ferry Co. Granite City & Madison Belt Line R. R. Gray's Point Terminal Ry. Great Falls & Teton County Ry. Great Northern Terminal Co. Green Bay & Western R. R. ■ Greenwich & Johnsonville R. R. H. Hamilton Belt Ry. Hannibal Union Depot Co. Harriman & Northeastern R. R. Hartwell Ry. Hawkins\-ille & Florida Southern Ry. Helena Terminal. Hibernia Mine R. R. High Pt. Randleman, Asheboro & South- ern R. R. Houghton Belt & Terminal Ry. Houston & Brazos Valley Ry. Houston & Shreveport R. R. Huntingdon & Broad Top Mountain R. R. I. Iberia & Vermillion R. R. Illinois Terminal R. R. Illinois Transfer R. R. Indiana Harbor Belt R. R. Indianapolis & Frankfurt R. R. Indianapolis Union Ry. Interstate Car Transfer Co. Interstate R. R. Co. Iowa & St. Louis Ry. Iowa Transfer Ry. Island Creek R. R. Jay Street Terminal. Joliet & Northern Indiana R. R. Joplin Union Depot Co. K. Kanawha Bridge & Terminal Co. Kanawha & West Virginia Ry. Kankakee & Seneca R. R. Kansas City, Clinton & Springfield Ry. Co. Kansas City Connecting R. R. Kansas City, Shreveport & Gulf Terminal Ry. Kansas City Stock Yards Co.— Kansas City, Mo. Kansas City Terminal Co. Kansas Southwestern Ry. Co. Keeneys Creek R. R. Kentucky & Indiana Terminal R. R. Keokuk & Des Moines Ry. Keokuk & Hamilton Bridge Co. Keokuk Union Depot Co. Kewaunee, Green Bay & Western R. R. Kiowa, Hardtner & Pacific R. R. L. Lackawanna & Montrose R. R. Lake Charles & Northern R. R. Lake Erie & Eastern R. R. Lake Erie & Pittsburgh Ry. Lake Superior & Ishpeming Ry. Lake Superior Terminal Ry. Lake Superior Terminal & Transfer Ry, Co. 224 Lansing Manufacturers R. R. Lansing Transit Co. Lawrenceville Branch R. R. Leavenworth Depot & R. R, Co. Leavenworth Terminal Ry. & Bridge Co. Lehigh & Susquehanna R. R. Lewiston & Auburn R. R. Lima Belt Ry. Litchfield & Madison Ry. Little Kanawha R. R. Little Rock Junction Ry. Logan & Southern Ry. Lorain, Ashland & Southern R. R. Lorain & W. Vhginia Ry. Louisiana Southern Ry. LouisvUle Bridge Co. Louisville & Jeffersonville Bridge Co. M. Mackinac Transportation Co. Macon, Dublin & Savannah R. R. IManistique & Lake Superior R. R. Marquette & Bessemer Dock & Nav. Co. Maumee Connecting Ry. Maywood & Sugar Creek Ry. Memphis Union Station Co. Michigan Air Line. Milwaukee Terminal Ry. Minneapolis Belt Line Co. Minneapolis & Eastern Ry. Minneapolis Western Ry. Minnesota & International Ry. Minnesota Northwestern Elec. Ry. Minnesota Transfer Ry. Mississippi Central R. R. Missouri & Illinois Bridge & Belt R. R. Missouri Pacific Corp. in Illinois. Missoiui Pacific Corp. in Nebraska. Missoiui Valley & Blair Ry. & Bridge Co. Montana Eastern Ry. Montpelier & Wells River R. R. Morenci Southern Ry. Morris Terminal Ry. Muncie Belt Ry. N. Narragansett Pier R. R. Natchez & Louisiana Ry. Transfer Co. Natchez & Southern Ry. New Iberia & Northern R. R. Co. New Jersey & New York R. R. New Orleans Great Northern. New River, Holston & Western R. R. New York Connecting R. R. New York Dock Co. R. R. New York & Long Branch R. R. New Westminster Southern Ry. Nortolk & Portsmouth Belt Line R. R. Norfolk Terminal Ry. Northern Alabama Ry. Northern Maine Seaport R. R. Northern Ohio R. R. Northern Pacific Terminal Co. of Oregon. Norway Branch R. R. Northwestern Terminal Ry. O. Ogden Mine R. R. Ogden Union Ry. & Depot Co. Oklahoma Belt Ry. Oklahoma City Junction Ry. Ontonagon R. R. Orange Branch (Sou. Ry). Orange & Northwestern R. R. Oregon Electric Ry. Oregon Trunk Ry. Pacific Coast R. R. Paris & Great Northern R. R. Co. Pennsylvania Terminal Ry. Peoria & Bureau Valley R. R. Peoria & Pekin Union Ry. Peoria Ry. Terminal Co. Philadelphia Belt Line. Pierre & Port Pierre Bridge Ry. Pierre, Rapid City & Northwestern Ry. Pine Bluff, Arkansas River R. R. Piaey River & Paint Creek Ry. Piqua & Ti-oy Branch R. R. Pittsbm-gh, Chartiers & Youghiogheny Ry. Pittsburgh, Ohio Valley & Cincinnati Ry. Pond Fork Ry. Pontiac, Oxford & Northei-n Ry. Port Hm-on Southern Ry. Portland Terminal Co. Port Townsend & Puget Sound Ry. Poteau Valley R. R. Pueblo Union Depot & R. R. Co. Puget Sound & Willapa Harbor Ry. Q. Quanah, Acme & Pacific Ry. Co. Quincy, Omaha & Kansas City R. R. R. Railway Transfer Co. Rio Grande, El Paso & Santa Fe R. R. 225 Rio Grande Junction Ry. Rio Grande Southern. Rio Grande Soutli western. Riverside, Rialto & Pacific Ry. Rock Island, Arkansas & Louisiana R. R. Rock Island & Dardanelle R. R. Rock Island-Frisco Terminal Ry. Rock Island Memphis Terminal. Rock Island, Stuttgart & Southern Ry. Roslyn Connecting R. R. Roswell R. R. S. St. Charles Air Line. St. Clair & Western R. R. St. Johnsbury & Lake Champlain R. R. St. Joseph Belt Ry. St. Joseph & Central Branch Ry. St. Joseph, South Bend & Southern R. R. St. Joseph Terminal R. R. St. Joseph Union Depot Co. St. Louis-BellevUle Electric Ry. St. Louis Belt & Terminal Ry. St. Louis Bridge Co. St. Louis Merchants Bridge Terminal Ry. St. Louis National Stock Yards Co. St. Louis & 0' Fallon Ry. St. Louis Terminal Ry. St. Louis Transfer Ry. St. Louis, Troy & Eastern R. R. Sainte Marie Union Depot Co. St. Paul Bridge & Terminal Ry. St. Paul & Kansas City Short Line R. R. St. Paul Union Depot Co. Salt Lake City Union Depot & R. R. Co. San Antonio Belt & Terminal R. R. San Antonio, Uvalde & Gulf R. R. Sandy Valley & Elkhom & Long Fork R. R. Sandy Valley & Elkhorn Ry. Sapulpa & Oil Field R. R. Sault Ste. Marie Bridge Co. Seattle, Port Angeles & Western Ry. Sharpsville R. R. Shreveport Bridge & Terminal Co. Sievern & Knoxville R. R. Sioux City Bridge Co. Sioux City Terminal Ry. South Chicago & Southern R..R. South Dayton R. R. Southern Illinois & Missouri Bridge Co. Southern Pacific Electric Ry. State University R. R. 10o889°— 19 15 Stock Yards Terminal Ry. Co. of St. Pa Sullivan County R. R. Sulphur Mines R. R. Sunday Creek R. R. Sunset Ry. Sweet City Bridge Co. Sweet City Terminal Ry. Sylvania Central Ry. Tacoma Eastern R. R. Tallulah Falls Ry. Tennessee & Carolina Southern Ry. Terminal Railroad Assoc'n of St. Louis. Terminal R. R. of East St. Louis. Terminal R. R. of St. Louis. Texas Mexican Ry. Texas ilidland R. R. Tidewater Southern Ry. Toledo, Saginaw & Muskegon Ry. Toledo Terminal R. R. Trans-Mississippi Terminal R. R. Troy Union R. R. Tug River & Kentucky R. R. Tunnel R. R. of St. Louis. Tylerdale Connecting R. R. U. Union Depot Co. of Columbus. Union Depot Co. of St. Louis (The). Union Freight R. R. Union Ry. Union Ry. & Transit Co. (of Illinois). Union R. R. of Baltimore. Union R. R. (Pennsylvania). Union Stock Yards Co. of Omaha. Union Terminal Co. of Dallas, Tex. Van Buren Bridge Co. Vermont Valley R. R. Virginia Air Line Ry. Virginia-Carolina Ry. W. Washington Terminal R. R. Waterloo, Cedar Rapids & Northern Ry. Waupaca-Green Bay Ry. Weatherford, Mineral Wells & North- western Ry. Wellston & Jackson Belt R. R. West Side Belt R. R. 226 West Tulsa Belt Ry. Wheeling Terminal Ry. White & Black River Valley R. R. White Oak Ry. Wichita Union Terminal Ry. Wiggins Ferry Co. Wilkes-Barre & Scran ton R. R. Williamson & Pond Creek R. R. Winona Bridge Ry. Co. Winston-Salem South Bound Ry. Wood River Branch R. R. Wyoming & Northwestern Ry. Y. Yadkin R. R. York Harbor & Beach R. R. Z. Zanesville Belt & Terminal R. R. Zanesville & Western Ry. Zanesville Terminal R. R. W. G. McAdoo, Director General of Railroads. Supplement No. 4 to General Order No. 27. Washington, D. C, July 25, 1918. In the matter of wages, hours, and other conditions of employment of employees in the mechanical departments (specified herein) of the railroads under Federal control, it is hereby ordered : Article I. — Classification of Employees. Section 1. Machinists. — Employees skilled in the laying out, fit- ting, adjusting, shaping, boring, slotting, milling, and grinding of metals used in building, assembling, maintaining, dismantling, and installing locomotives and engines (operated by steam or other power), pumps, cranes, hoists, elevators, pneumatic and hydraulic tools and machinery, scale building, shafting and other shop ma- chinery; ratchet and other skilled drilling and reaming, tool and die making, tool grinding and machine grinding, axle, wheel and tire turning and boring; engine inspecting; air equipment, lubricator and injector work; removing, replacing, grinding, bolting and breaking of all joints on superheaters, oxy-acetylene, thermit and electric welding on work generally recognized as machinists' work; the operation of all machines used in such work, including drill presses and bolt threaders using a facing, boring or turning head or milling apparatus, and all other work generally recognized as machinists' work. 1-A. Macliinist apprentices. — Include regular and helper appren- tices in connection with the above work. 1-B. Machinist helpers. — Employees assigned to help machinists and apprentices. Operators of all drill presses and bolt threaders not equipped with a facing, boring or turning head or milling apparatus, bolt pointing and centering machines, wheel presses, bolt threaders, nut tappers and facers ; cranesmen helpers, tool-room attendants, ma- chinery oilers, box packers and oilers; the applying of coupling be- tween engines and tenders, locomotive tender and draft rigging work, except when performed by carmen. 07 227 Section 2. — Boiler makers. — Employees skilled in laying out, cut- ting apart, building, or repaiiing boilers, tanks, and drums; inspect- ing, patcliing, riveting, chipping, caulking, flanging, and flue work; building, repairing, removing, and applying steel cabs and rumiing boards; laying out and fitting up any sheet iron or sheet steel work made of 16 gauge or heavier, including fronts and doors; grate and grate rigging, ash pans, front and netting and diapliragm work; en- gine tender steel underframe and steel tender truck frames, except where other mechanics perform tliis work; removing and applying all stay bolts, radials, flexible caps, sleeves, crown bolts, stay rods, and braces in boilers, tanks, and di'ums; applying and removing arch pipes; operating punches and shears for shaping and forming pneu- matic stay bolt breakers, air rams, and hammers; bull, jam, and yoke riveters; boiler makers' work in connection witli the building and re- pairing of steam shovels, derricks, booms, liousmgs, circles, and coal buggies; eye beam, channel iron, angle iron, and tee iron work; all drilling, cutting, and tappmg, and operating rolls in connection with boiler makers' work; oxyacetylene, thermit, and electric weldmg on work generally recognized as boiler makers' work, and all other work generally reognized as boiler makers' vrork. ^-A. — Boilermaker ap'prentices. — Include regular and helper appren- tices in connection with above. 2-B. — Boiler maker helpers. — Employees assigned to help boiler makers and their apprentices. Operators of drill presses and bolt cutters in the boiler shop, punch and shear operators (cutting only bar stock and scrap). Section 3. — Blacksmiths .—EmiplojeGs skilled in welding, forging, shaping, and bending of metal; tool dressing and tempering; spring makmg, tempering, and repairing; potashmg, case and bicUoride hardening; flue welding under blacksmith foreman; operating fur- naces, bulldozers, forging machmes, drop-forgmg machines, bolt ma- chines, and Bradley hammers; hammersmiths, drop hammermen, trimmers, rollkig mill operators; operating punches and shears doing shaping and forming in connection with blacksmiths' work; oxy- acetylene, thermit, and electric welding on work generally recognized as blacksmiths' work, and all other work generally recognized as blacksmiths' work. 3-A. — Blacksmith apprentices. — Include regular and helper appren- tices m connection with the above. 3-B. — Blacksmith helpers. — Employees assigned to helping black- smiths and apprentices; heaters, hammer operators, machine helpers, drill press and bolt-cutter operators, punch and shear operators (cut- ting only bar stock and scrap) in connection with blacksmiths' work. Section 4. — Sheet-metal workers. — Sheet-metal workers shall in- clude turners, coppersmiths, and pipe fitters employed in shop yards 228 and buildings and on passenger coaches and engines of all kinds, skilled in the buildmg, erecting, assembling, installuig, dismantling, and mamtaming parts made of sheet copper, brass, tin, zinc, white metal, lead and black planished and pickled iron of less than 16 gauge, including brazing, soldermg, tinning, leading, and babbitting, the bending, fittmg, cutting, threadmg, brazing, connectmg, and dis- connecting of air, water, gas, oil, and steam pipes; the operation of babbitt fires and pipe-threading machmes; oxyacetjdene, thermit, and electric vrelding on work generally recognized as sheet-metal workers' work, and all other work generally recognized as sheet- metal workers' work. 4-A. — Sheet-metal worker apprentices. — Include regular and helper apprentices in connection with the above. 4-B. — Sheet-metal worker helpers. — Employees regularly assigned as helpers to assist sheet-metal workers and apprentices. Section o. — Electrical workers, first chss. — Employees skilled m repairing, rebuilding, installmg, inspecting, and maintaming the elec- tric wiring of generators, switchboards, motors and control, rheostats and control, static and rotary transformers, motor generators, elec- tric heacUights and headlight generators; electric welding macliines; storage batteries, and axle lighting equipment; pole lines and sup- ports for service wii'es and cables, catenary and monorail conductors and feed whes, overhead and underground; wmding armatures, fields, magnet coils, rotors, stators, transformers and starting compensa- tors; all outside and inside wiring in shops, yards, and on steam and electric locomotives, passenger train and motor cars, and include wiremen, armature w^inders, switchboard operators, generator at- tendants, motor attendants, substation attendants, electric crane op- erators for cranes of 40 tons capacity or over; cable sphcers, Imemen and groundmen, signalmen and signal maintainors where handling wires and apparatus carrying 240 volts or over or m dense traffic zones, and all other work properly recognized as first-class electrical workers' work. 5-A.— Electrical workers, second class. — Operators of electric cranes of less than 40 tons capacity; linemen and groundmen, signalmen and signal mamtainers, where handling wires and apparatus carrying less than 240 volts and in normal traffic zones, and all other work properly recognized as second-class electrical workers' Avork. 5-B. — Electrical worker apprentices. — Include regular and helper apprentices in connection with the above. 5-C. — Electrical worker helpers.— Employees regularly assigned as helpers to assist electrical workers and apprentices, including electric lamp trimmers who do no mechanical work. Section 6.— Carmen. — Employees skilled in the building, main- taining, dismantling, painting, upholstering, and inspectmg of aU 229 passenger and freight train cars, both wood and steel; planing mill, cabinet, and bench carpenter work, pattern and flask making, and all other carpenter work hi shop antl yards; carmen's work in building and repairing motor cars, lever cars, hand cars, and station trucks; building, repairmg, removing, and applying locomotive cabs, pilots, pilot beams, runnuig boards, foot and headUght boards, tender frames and trucks; pipe and inspection work in connection with air- brake equipment on freight, cars; applying patented metal roofing; repairmg steam-heat hose for locomotives and cars; operating punches and shears doing shaping and forming hand forges and heating torches in connection with carmen's work; painting, varnishing, sur- facing, lettering, decorating, cutting of stencils and removmg paint; all other work generally recognized as painters' work under the supervision of the locomotive and car departments; joint car inspec- tors, car inspectors, safety appliance, and train-car repairers, wrecking derrick engineers, and wheel-record keepers; oxyacetylene, thermit, and electric welding on work generally recognized as carmen's work, and all other work generally recognized as carmen's work. 6-A. — Carmen apprentices. — Include regular and helper apprentices in connection with the above. Q-B.^— Carmen lielpers. — Employees regularly assigned to help carmen and apprentices; car oilers and packers, material carriers, and rivet heaters; operators of bolt threaders, nut tappers, drill presses, and punch and shear operators (cutting only bar stock and scrap) . Section 7. — Holders. — Include molders, cupola tenders, and core makers. 7-A. — Molder apprentices. — Include regular and helper appren- tices in connection with the above. 7-B. — Molder helpers. — Employees regularly assigned to help molders, cupola tenders, core makers and then apprentices. Article II. — Rates and Method of Application. Section 1. For the above classes of employees (except carmen, second-class electrical workers, and all apprentices and helpers) who have had four or more years' experience and who were on January 1, 1918, receiving less than 55 cents per hour, establish basic minimum rate of 55 cents per hour, and to this basic minimum rate and all other hourly rates of 55 cents per hour and above, in effect as of January 1, 1918, add 13 cents per hour, establishing a minimum rate of 68 cents per hour. Section 1-A. For carmen and second-class electrical workers who have had four or more years' experience and who were on January 1, 1918, receiving less than 45 cents per hour, establish a basic mini- mum rate of 45 cents per hour, and to this minimum basic rate and 230 all other hourly rates of 45 cents and above, in effect as of January 1, 1918, add 13 cents per hour, establishing a minimum rate of 58 cents per hour. Section 1-B. Rates of compensation exceeding the minimum rates established herein to be preserved ; the entering of employees in the service or the changing of their classification or work shall not operate to establish a less favorable rate or condition of employment than herein established. Section 1-C. The Director General recognizes that the minimum rates established herein may be exceeded in the case of men of excep- tional skill, who are doing special high-grade work, which has here- tofore enjoyed a differential. Such cases would include pattern makers, passenger-car repair men, oxy-acetylene, thermit, and electric weldmg in car-repair work, etc., and should be presented to the Board of Railroad Wages and Working Conditions for recommenda- tion as provided in General Order No. 27. Section 2. The above classes of employees (except carmen, second-class electrical workers, and all apprentices and helpers) who have had less than four years' experience in the Vv^ork of theu* trade will be paid as follows : (a) One year's experience or less, 50 cents per hour. (h) Over one year and under two years' experience, 53 cents per hour. (c) Over two years' and under three years' experience, 57 cents per hour, (d) Over three years' and under four years' experience, 62 cents per hour. Section 2-A. Carmen and second-class electrical workers who have had less than four years' experience in the work of their trade will be paid as follows : (a) One year's experience or less, 48^ cents per hour. (6) Over one year and under two years' experience, 50^ cents per hour. (c) Over two years' and under tliree years' experience, 52^ cents per hour. {d) Over three years' and under four years' experience, 54^ cents per hour. Section 2-B. At the expiration of the four-year period the em- ployees mentioned in section 2 and section 2-A shall receive the respective minimum of their craft. Article III. Section 1. Regular apprentices between the ages of 16 and 21, engaging to serve a four-year apprenticeship, shall be paid as fol- lows: Starting-out rate and for the first six months, 25 cents per 231 hour, with an increase of 2^ cents per hour for each six montlis thereafter up to and including the first three years ; 5 cents per hour increase for the first six months of the fourth year and 7^ cents per hour for the last six months of the fourth year. Section 1-A. If retained in the service after the expiration of their apprenticeship, apprentices in the respective trades shall re- ceive not less than the minimum rate established for their craft. Section 2. Helpers in the basic trades herein specified will be paid 45 cents per hour. Section 3. Helper apprentices will receive the minimum helper rate for the first six months, with an increase of 2 cents per hour for every six months thereafter until they have served three years. Section 3-A. Fifty per cent of the apprentices may consist of helpers who have had not less than two consecutive years' experience in their respective trades in the shop on the division where advanced. In the machinist, sheet-metal worker, electric, and molder trades the age limit for advancement wiU be 25 years; in the boilermaker, blacksmith, and carmen trades 30 years. Section 4. In the locomotive and car departments gang foremen or leaders and all men in minor supervisory capacity and paid on an hourly basis will receive 5 cents per hour above the rates provided for their respective crafts. Section 5. The supervisory forces of the locomotive and car departments, paid on a monthly basis and exercising supervision over the skilled crafts, will be paid an increase of $40 per month in addition to the monthly rate as of January 1, 1918, with a minimum of $155 per month and a maximum of $250 per month. Article IV. — General Application. Section 1. Each railroad will in payments to employees on and after July 1, 1918, include these increases therein. Section 1-A. The increases in wages and the" rates established herein shall be effective as of January 1, 1918, and are to be paid according to the time served to all who were then in the railroad service, or who have come into such service since, and remained therein. A proper ratable amount shaU also be paid to those who for any reason since January 1, 1918, have been dismissed from the service, but shall not be paid to those who have' left it voluntarily. Men who have left the railroad service to enter the military service of the Army or Navy shall be entitled to the pro rata increase accruing on their wages up to the time they left, and the same rule shall apply to those who have been transferred from one branch of the raih'oad service, or from one road, to another. Section 2. The hourly rates named herein are for an eight-hour day and one and one-half time wiU be paid for aU overtime, including 232 Sundays and the following holidays : New Year's Day, Washington's Birthday, Decoration Day, Fourth of July, Labor Day, Thanks- giving, and Christmas. Section 3. While the specific rates per hour named herein will be retroactive to January 1, 1918, the special overtime provisions estab- hshed in section 2 of this article will be effective as of August 1, 1918, with the provision that in computing overtime to determine back pay to January 1, 1918, overtime will be paid at a pro rata rate for all overtime worked in excess of the hours constituting the recognized day or night shift, except where higher overtime rate basis exists, or has been applied, in which event the more favorable condition shall be the basis of computing back pay accruing from this order. Section 4. Employees, except monthly salaried employees, coming within the scope of this order, sent out on the road for emergency service, shall receive continuous time from the time called until their return as follows: Overtime rates for all overtime hours whether working, waiting, or traveling, and straight time for the recognized straight time hours at home stations, whether working, waiting, or traveling, except that after the first 24 hours, if the work is completed or they are relieved for 5 hours or more, such time shall not be paid for, provided that in no case shall an emplo^^ee be paid for less than 8 hours on week days and 8 hours at one and one- half time for Sunda3^s and holidays for each calendar day. Where meals and lodging are not provided by the railroad an allowance Vv^iU be made for each meal or lodging. Employees will receive allowance for expenses not later than the time when they are paid for the service rendered. Section 5. Employees specified herein, Avhen sent from home point to temporarily fill vacancy or perform work at outside division points, will be paid straight time and overtime rates as per shop rules, in- cluding going and return trip, in addition to which they will be paid pro rata at the rate of ^2 per day for meals and lodging. Section 6. Carmen stationed at points requiring only one em- ployee on day shift or night shift, or day and night shifts, shall be paid eight hours at not less than the hourly rate provided herein. Section 7. Mechanics now regularly assigned to perform road work and paid on a monthly basis shall be paid for eight hours at not less than the hourly rate provided herein. Section 8. Employees on a piecework basis shall receive not less than the minimum rate per hour awarded to the hourly workers, including time and one-half for overtime, as hereinbefore provided; otherwise piecework rates provided in General Order No. 27 shall apply. 233 Section 9. The application of this order shall not, in any case, operate to establish a less favorable wage rate than in effect January 1, 1918. Article V. — Payments for Back Time. Section 1. As promptly as possible the amount due in back pay from January 1, 1918, in accordance with the provisions of this order, will be computed and payment made to the employees, separately from the regular monthly payments, so that employees will know the exact amount of these back payments. Section 2. Recognizing the clerical work necessary to make these computations for back pay. and the probable delay before the entire period can be covered, each month, beginning with January, shaU be computed as soon as practicable, and, as soon as completed, pay- ments will be made. Article VI. — Interpretation of this Order. Section 1. Railway Board of Adjustment No. 2 is authorized by Article IX of General Order No. 27 to perform the following duty: Wages and hours, when fixed by the Director General, shall be incorporated into existing agreements on the several railroads, and should differences arise between the managements and the employees of any of the railroads as to such incorporation) such questions of difference shall be decided by the Railway Board of Adjustment No. 2 when properly presented, subject always to review by the Director General. Section 2. In addition to the foregoing, other questions arising as to the intent or application of this order in respect to the classes of employees within the scope of Railway Board of Adjustment No. 2 shall be submitted to such board, which board shall investigate and report its recommendations to the Director General. Section 3. All rates applied under this order shall be filed b}' the Regional Directors wiih the Board of Raih'oad Wages and Working Conditions. Section 4. The rates, increases, and other conditions of emplo}'- ment herein established for the classes of employees herein specified shall supersede the rates, increases, and other conditions established by General Order 27, except as provided in section 8, Article IV. In reaching the conclusions upon which this order is based, I have been keenly conscious not alone of the interests of the large number of railway employees who are greatly benefited thereby, but also of my solemn duty to the American people to see to it that the trust they have committed to me is discharged faithfully, with justice to them as well as to the railroad employees concerned. No right decision can be made which considers only the demands and interests of any class of men apart from the paramount interest of the public and the supreme necessity of winning this war. 234 Now that the decision has been made, the American people, whose servants we are, expect every railroad employee to devote himself with now energy to his work, and by faithful and efficient service to justify the large increases of pay and the improvement in working conditions hereby granted. The American people have a right to expect this and they wiU be content with nothing less. It is of the utmost importance that motive power and cars shall be kept in repair and that the output of railroad shops throughout the country shall be greatly increased in the future. Unless this is done, the railroads can not efficiently perform the increased duties imposed upon them by the war, and the fighting power of our armies in France and of our navies on the high seas will be seriously impaired. I am proud of the loyal service the great body of railroad men tliroughout the country have rendered to their Government since the railroads have come under Federal control. It is a genuine pleasure to make this acknowledgment, but I should not fail to say at the same time that there are instances where agitations and dis- turbances in some of the locomotive and car shops have been ex- tremely hurtful to the country. The loyal and patriotic employees, who constitute the great majority of the army of railroad workers, have not yielded, be it said to their credit and honor, to these dis- turbances. But the few who have have done their country a grievous injury by impairing the efficiency and reducing the output of the shops where these disturbances have occurred. The loyal and patriotic employees can render a new and powerful service to their country by using their influence to expose any who may become slackers in their work, by cooperating with their officers in the enforcement of discipline, and by increasing, to the utmost limit of their capacity, the output of locomotives and cars which are so essential to the efficient operation of the railroads of the coun- try and to the success of our armies in the field. I know I can count on the patriotism and devotion to duty of every true American en- gaged in the railway service of the United States. W. G. McAdoo, Director General of Railroads. Addendum No. 1 to Supplement No. 4 to General Order No. 27. Washington, D. C, September 1, 1918. Effective September 1, 1918, superseding General Order No. 27 and in lieu thereof, as to the employees herein named, the following rates of pay and rules for coach cleaners are hereby ordered : Article I. — Rates of Pay. {a) For coach cleaners who were on January 1, 1918, prior to the application of General Order No. 27, receiving less than sixteen (16) 235 cents per hour, establish a basic minimum rate of sixteen (16) cents per hour, and to this basic minimum rate and aU hourly rates of six- teen (16) cents and above add twelve (12) cents per hour, estabhsh- ing a minimum rate of twenty-eight (28) cents per hour, provided that the maximum shall not exceed forty (40) cents per hour. (h) All coach cleaners shall be paid on the hourly basis. Article II. — Preservation of Rates. (a) The minimum rates and all rates in excess thereof, as herein established, and higher rates which have been authorized since January 1, 1918, except by General Order No. 27, shall be preserved. (Jb) Coach cleaners temporarily or permanently assigned to higher- rated positions shall receive the higher rates while occupying such positions; coach cleaners temporarily assigned to lower-rated posi- tions shall not have their rates reduced. Article III. — Hours of Service. Eight consecutive hours, exclusive of the meal period, shall con- stitute a day's work. Article IV. — Overtime. (a) Where there is no existing agreement or practice more favor- able to the employees, overtime will be computed for the ninth and tenth hour of continuous service, pro rata on the actual minute basis, and thereafter at the rate of time and one-half time. Even houi-s will be paid for at the end of each pay period; fractions thereof wall be carried forward. (b) Coach cleaners will not be required to suspend work during regular hours to absorb overtime. Article V.^ — Application. The rates of pay and rules herein estabhshed shall be incorporated into existing agreements on the several railroads. W. G. McAdoo, Director General of Railroads. Addendum No. 2 to Supplement No. 4 to General Order No. 27. Washington, D. C, September 1, 1918. Effective September 1, 1918, and as provided for in section 1-C of Article II of Supplement No. 4 to General Order No. 27, the following rates of compensation for certain classes of employees specified herein in the respective shop crafts who have heretofore received a rate in excess of the established minimum rate and rates of compensa- tion for classes of employees named in sections 5 and 6 of this order which were not included in Supplement No. 4 are hereby ordered. 236 Article I. BOILERMAKERS. Sec. 1. For flangers and layers out, establish a rate of two and one-half (2J) cents per hour above the minimum rate established for boilermakers, at point employed. BLACKSMITHS. Sec. 2. For hammersmiths working out of heavy furnaces and frame fire blacksmiths, establish a rate of two and one-half (2^) cents per hour above the minimum rate established for blacksmiths, at point employed. CARMEN. Sec. 3. For cabinetmakers, coach and locomotive carpenters, upholsterers, planing mill men, millwrights, pattern makers, passenger train steel car body builders and repairers, air brake rack men, coach and locomotive painters employed to perform varnishing, surfacing, lettering, or decorating; silver and nickel platers and buffers; oxy- acetylene, thermit, and electric welders, on work generally recognized as carmen's work, who were on January 1, 1918, receiving less than fifty-five (55) cents per hour, establish a basic minimum rate of fifty-five (55) cents per horn-; and to this basic minimum rate, and all other hourly rates of fifty-five (55) cents per hour and above in effect as of January 1, 1918, add thirteen (13) cents per hour, estab- lishing a minimum rate of sixty-eight (68) cents per hour. FREIGHT TRAIX STEEL CAR BUILDERS AXD REPAIRERS. Sec. 4. For freight train steel car body builders and repairers, who on January 1, 1918, were receiving less than fifty (50) cents per hour, establish a basic minimum rate of fifty (50) cents per hour, and to this basic minimum rate, and all other hourly rates of fifty (50) cents per hour and above in effect as of January 1, 1918, add thirteen (13) cents per hour, establishing a minimum rate of sixtj^-three (63) cents per hour. CAR DEPARTMENT EMPLOYEES. Sec. 5. Include stock keepers (car department) as carmen helpers, with the rate established for helpers of shop crafts. GENERAL. Sec. 6. For piecework inspectors and routers, apply section 4, Article III of Supplement No. 4 to General Order No. 27. miscellaneous. Sec. 7. On some of the railroads and at certain main snop points of certain other railroads, boilermakers, classified and performing the 237 work of boiler inspectors, and those of the shop crafts designated in Supplement No. 4 to General Order No. 27, engaged in operating oxyacetylene, thermit, and electric welding appliances, received a rate in excess of the recognized standard or going rate "of the me- chanics; where this practice was in effect, establish a rate of two and one-half (2^^) cents per hour above the minimum rate established for the mechanic in Supplement No. 4 to General Order No. 27. APPLICATION. Sec. 8. The application of this order shall not in any case operate to establish a less favorable rate or condition than provided for in Supplement No. 4 to General Order No. 27. Sec. 9. For application of the provisions of this order, see Articles IV, V, and VI, Supplement No. 4 to General Order No. 27, excepting therefrom such provisions as relate to its effective date. W. G. McAdoo, Director General of Railroads. Amendment No. 1 to Supplement No. 4 to General Order No. 27. Washington, D. C., Sejptemher 23, 1918. To remove certain inequities resulting from the application of section 2, Article III, of Supplement No. 4 to General Order No. 27, and as a substitute therefor, it is hereby ordered, effective September 1st, 1918: compensation for helpers — shop crafts. For helpers in the basic trades specified in Supplement No, 4 to General Order No. 27, who, on January 1, 1918, were receiving less than thirty-two (32) cents per hour, establish a basic minimum rate of thirty-two (32) cents per hom*; to this basic minimum rate, and all hourly rates of thirty-two ^32) cents per hour and above in effect as of January 1, 1918, add thii'teen (13) cents per hour, establishing a minimum rate of forty -five (45) cents per hour. W. G. McAdoo, Director General of Railroads. Interpretation No. 1 to Supplement No. 4 to General Order No. 27 and Addendum No. 2 Thereto. Washington, D. C., September 16, 1918. Employees in any department, performing the classes of work specified in Supplement No. 4 to General Order No. 27 and Adden- dum No. 2 thereto, shall receive the rates of pay and be governed by the conditions of employment provided for therein. 238 If their present pay-roll classification does not conform, they shall be given correct classification. W. G. McAdoo, Director General of Railroads. Interpretation No. 2 to Supplement Xo. 4 to General Order No. 27. Washington, December 17^ 1918. Question. («) Does Supplement No. tt, its amendments, addenda, and inter- pretations, to General Order No. 27, apply to mechanics and helpers engaged in the construction, maintenance, and repair of electric, elec- tric-pneumatic, electric-mechanical, and mechanical interlocking and signaling systems ? {h) Machinists, electricians, blacksmiths, pipe fitters, etc., and their respective helpers are employed on the work above specified. How shall they be classified ? Decision. Apply Interpretation No. 1 to Supplement No. 4, issued under date of September 16, 1918, reading as follows : " Employees in any department performing the classes of work specified in Supplement No. 4 to General Order No. 27 and Addendum No. 2 thereto, shall receive the rates of pay and be governed by the conditions of employment provided for therein. '' If their present pay-roll classification does not conform, they shall be given correct classification." The classification of a composite mechanic shall be based upon the preponderating class of work performed, and the rate of pay shall not be less than the minimum hourly rate of highest rated craft rep- resented in the crafts of which he is the composite. Examjyle {a). — A mechanic perforins work coming under the clas- sification of machinist, sheet-metal worker, first and second class electrical Avorker, the preponderating amount of work is that of a second-class electrical worker. He shall be classified as an electrician and paid not less than 68 cents per hour. Example (h). — A mechanic performs work coming under the classification of machinist, sheet-metal worker, first and second class electrical worker, the preponderating amount of work is that of a machinist. He shall be classified as a machinist and paid not less than 68 cents per hour. This decision shall not be construed — (1) To supersede, alter, or amend the lines of demarcation as recognized by the crafts who respectiAcly perform the work enu- EREATUM. [Insert in Bulletin No. 4 (Revised) facing page 238.] Interpretation No. 1^ to Supplement No. 4 and its Addenda to General Order No. 27. Washington, Novemher 4, 1918. Question. Is it permissible to assign a mechanic's helper, when mechanic is off duty for any cause, to the mechanic's work at mechanic's rate for that time only'^ Decision. Helpers are not to be assigned to mechanics' work, except as helper apprentices, in accordance with Section 3-A, Article III, Supplement No. 4 to General Order No. 27, and the governing rules of existing agreements, or under the conditions contained in the Director Gen- eral's memorandum to Mr. A. O. Wharton, President of the Railway Employees Department, A. F. of L., under date of February 14, 1918 ; paragraphs 1 to 6 inclusive herewith quoted : " 1. The hours of labor in shops and roundhouses to be governed by the necessities as indicated by the general condition of equipment. At shops and roundhouses now working one shift which totals less than 70 hours per week, an increase, preferably on a seven-day basis, may be made. Where desired, working hours may be so arranged that men will be released at 4 p. m. on one day each week. Existing working agreements to govern the rates, subject to the action of the Railroad Wage Commission. " 2. All apprentices who have served three years may be promoted to mechanics and paid the going rate of wages for that position. Such promoted apprentices to be given the right of practical ex- perience on work of their respective trades to which they had not been advanced during the three-year period. " 3. Helpers in their respective trades who have had five or more years' experience may be promoted to classification of mechanics ; they to receive mechanics' rate and be given an opportunity to learn all branches of the trade. "The duly authorized committeeman of each trade in each shop covered by agreemeiits shall be consulted, and mutual understanding arrived at in promoting helpers, and the ratio of helpers to be pro- moted, to the number of mechanics in any one trade in any one shop, shall not exceed 20 per cent. 115473°— 19 ♦ " The international officers and general chairmen of each trade on each road covered by agreements shall be furnished a complete record of the men promoted. "4. Mechanics applying for employment will not be denied such employment for any cause other than inability to perform the work; this preference rule to be in eft'ect as long as three-year apprentices or promoted helpers are employed at mechanics' rates. " 5. Where a reduction is made in the force of mechanics, pro- mxOted helpers in accordance with their seniority shall be set back first, then advanced apprentices ; no mechanics to be laid off until all such promoted helpers and apprentices have been set back. " 6. The promotions above referred to are to meet an emergency caused by the war, and shall cease at the close of the war." In the absence of an agreement with the employees coming within the scope of Supplement No. 4 (and its Addenda) to General Order No. 27 this decision shall govern. W. G. McAdoo, Director General of Railroads, WASHINGTON : GOTBRNMENT PRTNTINO OPPICH : 1«» 239 merated in Supplement Xo. 4, its addenda and interpretations to General Order No. 27 ; (2) To extend the practice of using a mechanic to perform the work of two or more crafts. Whenever investigation develops that the work herein referred to can be arranged so as to assign mechanics to perform the work of one craft, such assignment shall be made. W. G. Mc^Vdoo, Director General of Railroads. Interpretation No. 3 to Supplement No. 4 to General Order No. 27. (See interpretation No, -S to General Order No. 27.) Supplement No, 5 to General Order No. 27, Washington, D. C, August 9, 1918. Eifective August 1, 1918, the wages, hours, and other conditions of employment of employees of the Operating Department of the Pullman Company will be the same as those fixed in Supplement No. 4 to General Order No. 27 for corresponding classes of railroad employees, but none of the provisions named therein will be retro- active prior to August 1, 1918, W. G. McAdoo, Director General of Railroads. Supplement No. 6 to General Order No 27. Washington, D. C, August 30, 1918. In General Order No. 27 and supplements thereto, and m certain memoranda of understanding creating Railway Boards of Adjust- ment put in effect by General Orders No. 13 and No. 29, naethods have been provided for interpretation of wage orders issued by the Director General upon recommendations of such boards and the Division of Labor, "subject always to review by the Director General." For the purpose of afforduig prompt interpretations of all wage orders issued by the Dkector General, the duties and authority of the Board of Jlailroad Wages and Working Conditions are hereby extended to include investigations and recommendations to the Director General of mterpretations of all such wage orders, when requested to do so by the Director of the Division of Labor, It should be understood by railroad employees that it is imprac- ticable to give interpretation on ex-parte statement to the thousands who request infomiation as to the manner in which w^age orders should be apphed in individual cases. Operating officials of the railroads are 240 required to place wage orders in effect fairly and equitably, and should differences of opinion arise necessitating a formal interpretation, the matter will he disposed of in the f ollowmg manner : "When a wage order is placed in effect in a manner with which an emploj^ee, or the employee's committee disagrees, a joint statement quoting the language of the wage order, and including the contentions of employees and the contentions of officials, signed by the represent- atiA-es of the employees and the officials, will be transmitted to tlie Director of Labor, who will record and transmit same to the Board of Raihoad Wages and Working Conditions, which will promptly investigate and make recommendation to the Director General. Upon the receipt of mterpretation from the Director General, the Director of Labor will transmit such interpretation to the Hallway Boards of Adjustment for their information and guidance, in the apphcation of such interpretation to existing conditions, or to ques- tions arismg from the incorporation of the order as so interpreted into existing agreements on all raihoads under Federal control. As occasion demands, all interpretations will be printed and given general pubhcity, for the purpose of communicating the information to all concerned, and thus avoiding, the necessity of duplication of in terp ret ations . On and after September 1st, 1918, any disagreement between the employees and the officials, over the apphcation of any vrage order, will be submitted to the Director of Labor, as outlined above, but in order promptly to dispose of all requests for interpretations previously presented to the Division of Labor, or to the Boards of Adjustment, such requests will be immediately recorded and transmitted to the Board of Kailroad Wages and Working Conditions by the Director of Labor. Nothing herem contained revokes authority granted to the Division of Labor of Railway Boards of Adjustment in dotermuiing disputes aiising m connection with the apphcation of interpretations of wage orders to existing concUtions, or in connection with the incorporation of such mterpretations into existing agreements. W. G. McAdoo, Director General of Railroads. Supplement No. 6-A to Gexehal Ordek Xo. 27. Washington, D. C, Octohcr 28, 191S. Supplement Xo. G to General Order Xo. 27 is hereby amended by adding thereto the following: Where differences of opinion arise necessitating a formal interpre- tation of any Wage^Order issued by the Director General and where 241 the question involved is of general application and covers a large number of railroads, application for such interpretation may be made either by a Regional Director or by the chief executive of the railroad organization representing the class of employees involved or the Chairman of any Railway Board of Adjustment or the Di- rector of the Division of Labor. Such application shall be sent to the office of the Director of Labor and he will record and transmit it to the Board of Railroad "Wages and "Working Conditions, which will promptly investigate and nuike recommendation to the Director General. Upon the receipt of interpretation from the Director General, the Director of Labor will send such interpretation to the Railway Boards of Adjustment for their information and guidance. W. G. McAdoo, Director General of Railroads. Supplement No. 7 to General Order No. 27. Washington, D. C, September 1, 1918. Eilective September 1, 1918, superseding General Order No. 27, and in heu thereof, as to the employees herein named, the following rates of pay and rules for overtime and working conditions for all clerical forces in all departments, and for certain employees m sta- tions, storage or terminal warehouses, docks, storehouses, shops, and yards, upon railroads under Federal control, are hereby ordered: Article I. — Rates of Pay. (a) For all employees who devote a majority of their time to clerical work of any description, including train announcers, gate- men, checkers, baggage and parcel room employees, train and engine crew callers, and the operators of all office or station equipment de- vices (excepting such as come Avithin the scope of existing agree- ments or those hereafter negotiated with the railroad telegraphers), estabUsh a basic minimum rate of sixty-two dollars and fifty cents ($62.50) per month; and to this basic miaimum rate and aU rates of sixty- two dollars and fifty cents ($62.50) and above, in efi^ect as of January 1, 1918, prior to the application of General Order No. 27, add twenty-five (25) dollars per month, establishing a minimum rate of eighty-seven dollars and fifty cents ($87.50) per month. (&) This order shaU apply to chief clerks, foremen, subforcmen, and other similar supervisory forces of employees herein provided for. (c) For office boys, messengers, chore boys, and other emploj^ees under eighteen (18) years of age fiUing similar positions, and sta- tion attendants, estabhsh a basic minimum rate of twenty (20) dollars per month, and to tliis basic minimum rate and all rates of 105889°— 19 -16 242 twenty (20) dollars per month and above, in effect as of January 1, 1918, prior to the application of General Order No. 27, add twenty- five (25) dollars per month, establishing a minimum rate of forty- five (45) dollars per month. (d) For all other employees not otherwise classified, such as jani- tors, elevator and telephone switchboard operators, office, station, and warehouse watchmen, establish a basic minimum rate of forty-five (45) dollars per month, and to this basic minimim rate and all rates of forty-five (45) dollars per month and above, in effect as of Janu- ary 1, 1918, prior to the application of General Order No. 27, add twenty-five (25) dollars per month, establishing a minimum rate of seventy (70) dollars per month. (e) The same increases provided for m sections (a), (b), (c), and (d) of this article, shall apply to employees named therein paid on any other basis. If) The wages for new positions shall be in conformity with the wage for positions of similar kind or class where created. Article II. — Stationary Engineers (Steam), Firemen, and PoWERrHoUSE OiLERS. (a) For all stationary engineers (steam), establish a basic mini- mum rate of eighty-five (85) dollars per month, and to this basic minimum rate, and all rates of eighty-five (85) dollars and above, in effect as of January 1, 1918, prior to the application of General Order No. 27, add twenty-five (25) dollars per month, establishmg a mini- mum rate of one hundred ten (110) dollars per month. (by This order shall apply to chief stationary engineers. (c) For all stationary firemen and power-house oilers, establish a basic minimum rate of sixty-five (65) dollars per month, and to this basic minimum rate, and all rates of sLxty-five (65) dollars and above, in effect as of January 1, 1918, prior to the application of General Order No. 27, add twenty-five (25) dollars per month, es- tablishing a minimum rate of ninety (90) dollars per month. Article III. — Locomotive Boiler Washers. For all locomotive boiler washers who were on January 1, 1918, prior to the application of General Order No. 27, receiving less than twenty-six (26) cents per hour, establish a basic minimum rate of twenty-sLx (26) cents per hour, and to this basic minimum rate, and all hourly rates of twenty-six (26) cents and above, add twelve (12) cents per hour, estabHshing a minimum rate of tliirty-eight (38) cents per hour, provided that the maximum shall not exceed fifty (50) cents per hour. 243 Article IV. — Power Transfer and Turntable Operators. For all operators of power-driven transfer and turntables who were on January 1, 1918, prior to the application of General Order No. 27, receiving less than twenty-one (21) cents per hour, establish a basic minimum rate of twenty-one (21) cents per hour, and to this basic minimum rate, and all hourly rates of twenty-one (21) cents and above, add twelve (12) cents per hour, estabhshing a minimum rate of thu-ty- three (33) cents per hour, provided that the maximum shall not exceed forty-five (45) cents per hour. Article V. — Shop, Roundhouse, Station, Storehouse, and Warehouse Employees (Except Employees Provided for in Harbor Awards). (a) For all laborers employed in and around shops, roundhouses, stations,' storehouses, and warehouses (except employees provided for in harbor awards), such as engine watchmen and wipers, fire builders, ash-pit men, boiler washer helpers, flue borei-s, truckei-s, stowers, shippers, coal passers, coal-chute men, etc., who were on Jan- uary 1, 1918, prior to the application of General Order No. 27, receiv- ing less than nineteen (19) cents per hour, establish a basic minimum rate of nineteen (19) cents per hour, and to this basic minimum rate, and all hourly rates of nmeteen (19) cents and above, add twelve (12) cents per hour, establishing a minimum rate of thirty-one (31) cents per hour, provided that the maximum shall not exceed forty- three (43) cents per hour. (b) For all common labor in the departments herein referred to and not otherwise provided for, who were on January 1, 1918, prior to the application of General Order No. 27, receiving less than six- teen (16) cents per hour, establish a basic minimum rate of sixteen (16) cents per hour, and to this basic minimum rate and all hourly rates of sixteen (16) cents and above, add twelve (12) cents per hour, estabhshing a minimum rate of twenty-eight (28) cents per hour, provided that the maximum shall not exceed forty (40) cents per hour. Article VI. — Monthly, Weekly, or Daily Rates. For aU monthly, weekly, or daily rated employees in the depart- ments herein referred to and not otherwise provided for, increase the rates in effect as of January 1, 1918, prior to the apphcation of Gen- eral Order No. 27, on the basis of twenty-five (25) dollars per month. Article VII. — ^Maximum Monthly Wage. No part of the increases provided for in this order shall apply to establish a salary in excess of two hundred fifty (250) doUai-s per month. 244 Article VIII. — Preservation of Rates. (a) The minimum rates, and all rates in. excess thereof, as herein established, and higher rates which hare been authorized since Jan- uary 1, 1918, except by General Order No. 27, shall be preserved. (b) Employees temporarily or permanently assigned to higher- rated positions shall receive the higher rates while occupying such positions; employees temporarily assigned to lower-rated positions shall not have their rates reduced. Article IX. — Exception. The provisions of this order will not apply in cases where amounts less than thirty (30) dollai-s per month are paid to individuals for special service which only takes a portion of their time from outside employment or business. * Article X. — Hours of Service. Eight (8) consecutive hours, exclusive of the meal period, shall constitute a day's work. Article XI. — Overtime and Calls. (a) Where there is no existing agreement or practice more favor- able to the employees, overtime shall be computed for the ninth and tenth hour of continuous service, pro rata on the actual minute basis, and thereafter at the rate of time and one-half time. Even hours wiU be paid for at the end of each pay period; fractions thereof will be carried forward. (h) When notified or called to work, outside of estabhshed hours, employees will be paid a minimum allowance of three hours. (c) Employees Avill not be required to suspend work during regular hours to absorb overtime. .Article XII. — Promotion and Seniority. (a) Promotions shall be based on ability, merit, and seniority, ability and merit being sufficient, seniority shall prevail, except, however, that this provision shall not apply to the pei-sonal office forces of such officers as superintendent, train master, division engineer, master mechanic, general freight or passenger agent, or their superiors iu rank and executive officers. The management shall bo the judge, subject to an appeal, as provided in Article XIII. (b) Seniority will be restricted to each classified department of the general and other offices and of each superintendent's or master mechanic's division. (c) Seniority rights of employees referred to herein, to: (1) New positions, (2) Vacancies wtU be governed by paragraphs (o) and (6) of this article. 245 (d) Employees declining promotion shall not lose their seniority. (e) Employees accepting promotion will be allowed thu-ty (30) days in which to qualify, and failing, will be returned to former position without loss of seniority. (/) New positions or vacancies will be promptly bulletined for a period of five (5) days in the departments where they occur. Em- ployees desiring such positions will file their applications with the designated official ^\dthin that time, and an appointment will be made within ten (10) days thereafter. Such position or vacancy may be filled temporarily pending an assignment. .The name of the appointee will immediately thereafter be posted where the position or vacancy was bulletined. (g) In reducing forces, seniority shall govern. When forces are iQcreased, employees will be returned to the service and positions formerly occupied, in the order of then seniority. Employees de- siring to avail themselves of this rule must file their names and ad- dresses with the proper official. Employees failmg to report for duty or give satisfactory reason for not doing so within seven (7) days from date of notification will be considered out of the service. (h) A seniority roster of all employees in each classified depart- ment, who have been in the service six (6) months or more, showing name, date of entering the service, and the date of each promotion or change, will be posted in a place accessible to those affected. (i) The roster wiU be revised and posted in January of each year, and shall be open to correction for a period of sixty (60) days from date of posting, on presentation of proof of error by an employee or his representative. The duly accredited representative of the em- ployee shall be furnished with a copy of roster upon written request. Article XIII. — Discipline and Grievances. (a) An employee disciplined, or who considers himself unjustly treated, shall have a fair and impartial hearing, provided written request is presented to his immediate superior within five (5) days of the date of the advice of discipline, and the hearing shall be granted within five (5) days thereafter. (b) A decision wiU be rendered withm seven (7) days after the completion of hearing. If an appeal is taken, it must be filed with the next higher official and a copy furnished the official whose decision is appealed within five (5) days after date of decision. The hearing and decision on the appeal shall be governed by the time limits of the preceding section. (c) At the hearing or on the appeal, the employee may be as- sisted by a committee of employees, or by one or more duly accredited representatives. 246 (d) The right of appeal by employees or representatives, in regu- lar order of succession and in the manner prescribed up to and inclusive of the highest official designated by the railroad, to whom appeals may be made, is hereby established. (e) An employee on request will be given a letter, stating the cause of discipline. A transcript of evidence taken at the investigation or on the appeal will be furnished on request to the employee or repre- sentative. (/) If the final decision decrees that charges against the employee were not sustained, the record shall be cleared of the charge; if sus- pended or dismissed, the employee shall be returned to former posi- tion and paid for all time lost. (g) Committees of employees shall be granted leave of absence and free transportation for the adjustment of differences between the railroad and the employees. Article XIV.^Rules for Application of this Order. (a) It is not the intention of this order to change the number of days per month for monthly paid employees. The increases per month provided for herein shall apply to the same number of days per month which were worked as of January 1, 1918. (b) The pay of female employees, for the same class of work, shall be the same as that of men, and their working conditions must be healthful and fitted to their needs. The laws enacted for the gov- ernment of their employment must be observed. Article XV. — Interpretation of this Order. The rates of pay and rules herein established shall be incorporated into existing agreements and into agreements which may be reached in the future, on the several railroads; and should dift'erences arise between the management and the employees of any of the railroads as to such incorporation, intent, or apphcation of this order prior to the creation of additional railway boards of adjustment, such ques- tions of difference shall be referred to the Director of the Division of Labor for decision, when properly presented, subject always to review by the Director General. Agreements or practices, except as changed by this order, remain ill effect. W. G. McAdoo, Director General of Railroads. 247 Interpretation No. 1 to Supplement No. 7 to General Order No. 27. overtime monthly, weekly or daily paid employees. Washington, D. C.^ Novemher 23^ 1918. Article I. Eight consecutive hours, exchisive of the meal period, constituting a day's work from the effective date of Supplement No. 7 to General Order No. 27, the increases provided for therein and applicable to monthly, weekly and daily paid employees, specified in Articles I, II and VI of Supplement No. 7, are based upon the recognized num- ber of working days constituting a calendar year (including Sun- days and or holidays where they have been considered a part of the employee's assignment), and the rates of pay in effect January 1, 1918, prior to the application of General Order No. 27, exclusive of overtime. The following examples illustrate the method to be used in establishing the straight time hourly rate as the basis of payment for overtime service: Example (o) Employees working thirty clays per month at a wage amount- ing to $60.00 per month on January 1, 1918, prior to the application of General Order No. 27, would on September 1, 1918, under Supplement No. 7, Article I — (a) automatically advance to the basic rate of $62.50 per month, plus $25.00 increase, establishing thp rate of $87.50 or $1,050.00 per year. In computing the pro rata rate per hour for overtime pay for monthly, weekly or daily paid (Mnployees, take the number of working days constituting a calendar year, mul- tiply by eight and divide the annual salary by the total hours, exclusive of overtime and disregarding time absent on vacations, sick leave, holidays, or for any other causes. In determining the hourly rate, fractions less than one- fourth of one cent shall be as one-fourth of one cent; over one-fourth and under one-half, as one-half cent; over one-half and under three-fourths, as three-fourths ; over three-fourths, as one cent. Example (h) Yearly wage $1,050.00-^2.880 hours=36.45 or 36.5^ per hour. Example (c) Yearly wage $1,200.00^2,880 hours=41.66 or 41.75«;^ per hour. Example (d) Yearly wage $1,300.00^2,880 hours=45.14 or 45.25^ per hour. Example (e) Yearly wage $1,500.00-^2,880 hours=52.1 or 52.25^ per hour. Example (/) Yearly wage $1,800.00-^2,880 hours=62.5^ per hour. Note. — It is to be understood that 2,880 hours is illustrative only ; the hours per year will vary as the assigned work days per year vary. Article II. On February 21, 1918, the Director General issued General Order No. 8, paragraph 3 thereof reading as follows : The broad question of wages and hours will be passed upon and reported to the Director General as promptly as possible by the present Railroad Wage Commission. Pending a disposition of these matters by the Director General, all requests of employees involving revisions of schedules or general changes 248 ill conditions affecting wages and hours will be held in abeyance by both the managers and employees. Wages, when determined upon, will be made re- troactive to January 1, 1918, and adjusted accordingly. Matters of controversy arising under interpretations of existing wage agreements and other matters not relating to wages and hours will take their usual course, and in the event of inability to reach a settlement, will be referred to the Director General. If employees coming ■within the scope of Supplement No. 7 to General Order No. 27, were paid a punitive rate of overtime after tlie regular day's -work, Sundays and or holidays prior to February 21, 1918, the same conditions should apply on the eight hour basis. Any punitive overtime rate established by employees under this interpretation since February 21, 1918, except as established by the Director General is unauthorized and can not be recognized. Example (a) Employees working ten hours per day .January 1, 1918, prior to the application of General Order No. 27. and who were, prior to February 21, 1918, paid at the rate of time and one-half time for ovetime, should be paid as follows : S. a. m. to 12 noon 4 hours' work 12 noon to 1 p. m 1 hour for meal excluded 1 p. m. to 5 p. m 4 hours' Avork 5 p. m. to 7 p. m 2 hours at rate of time and one-half time. Elapsed time 11 hours Time for meal 1 hour deducted Overtime 2 hours Total time to be paid for 11 hours Example (6) Overtime commences immediately following the eighth consecu- tive hour of continuous service, after deducting the meal period. On the basis of pro rata time for the ninth and tenth hour. 8 a. m. to 12 noon 4 hours 12 noon to 1 p. in 1 hour for meal excluded 1 p. m. to 5 p. m 4 hours' work r» p. m. to 7 p. m 2 hours' overtime, pro rata rate 7 p. m. to 9 p. m 2 hours' overtime, 1* times pro rata rate Elapsed time !•? hours Time of meal 1 hour deducted Continuous service_l 12 hours Total time to be paid for 13 hours Examjile (r) Employees working straight through eight consecutive hours. G a. ra. to 2 p. m 8 hours' work 2 p. m. to 4 p. m 2 hour.s' overtime, prn rata rate 4 p. m. to 6 p. m 2 hours' overtime, 1* times pro rata rate Elapsed time 12 liours Continuous service 12 hours Total time to be paid for 13 hours 249 Article III. — Hourly Kates. The employees coming under the provisions of Article III, IV and V of Supplement No. 7 to General Order No. 27, who were on Jan- uary 1, 1918, prior to the application of General Order No. 27, paid on a basis of ten hours or more to constitute a day, for whom hourly rates have been established, as per the above specified articles, shall, on and after September 1. 1918, the effective date of Supplement No. 7. receive one-eighth of the w-ages received for ten hours on January 1, 1918. prior to the application of General Order No. 27, as their basic hourly rale, to which shall be added twelve cents per hour, provided the hourly rate thus obtained shall not exceed the maximum rate specified in the respective articles. Example (a) Employees coming iinder the provisions of Articles III, IV and V of Supplement No. 7. to General Order No. 27, on a ten-hour basis, rate $2..50 per day ; one-eighth of 250 equals 31.25 cents per hour, adding the increase of twelve cents produces a rate of 43.25 cents under Articles III and IV. Under Article V — (a), the rate v\'ould revert to the maximum of forty-three cents; under Article V — (b), the rate would revert to the maximum of forty cents. Note. — To determine the hourly rate to be paid employees on the hourly basis and for whom ten hours or more were the established hours of service, use the method and example (a) of above Article III ; for classes specified in Supplement No. 7, Articles III, IV and V, working less than ten hours, and over eight hours, one-eighth of the wage received for the number of hours recognized as a day's work. Article IV. — Pat for Calls. Employees who are notified or called to work outside the eight consecutive hours, exclusive of the meal period and continuous service, constituting their regular assignment, shall be paid a mini- mum allowance of three hours for two hours w^ork or less; if held over two hours, time and one-half will be paid, computed on the minute basis. Example (a) 5 a. m. to 12 noon 4 hours' work 12 noon to 1 p. ra 1 hour for meal excluded 1 p. m. to 5 p. m 4 hours' Avork 6 p. m. to 7.30 p. m 1* hours' overtime, 14 times pro rata rate Elapsed time llA hours Time for meal 1 hour Break in continuous servif-e — 1 hour Time for call 3 hours, minimtim guarantee Total time to he paid for 11 hours Article V. Exclusive of employees whose regular assignment includes Sundays and or holidays, employees notified or called to work on Sundays and or holidays, will be paid not less than the minimum allowance 250 of three hours, and where 210 existing- agreement or practice is more favorable, such employees will be paid as per Examples (h) and (c) of Article II. Article VI. Payment of overtime at a rate in excess of pro rata will be com- putecl from and added to the pro rata rate. Article VII. Unless acceptable to a majority of employees in a department or subdivision thereof, the meal period shall not be less than thirty minutes or more than one hour. Article VIII. Where unjustifiable inequalities develop or exist in the rates of pay for relatively the same service and responsibility, as between employees of the same class within the respective groops, as specified in Supplement No. 7 to General Order No. 27, the Kegional Directors are hereby authorized to establish uniform rates of pay by zones or districts throughout their respective regions, under the following conditions : (a) The maximum rates establiiihed by Supplement No. 7 to General Order No. 27 must not be exceeded. (h) Rates established by Supplement No. 7 to General Order No 27 must not be reduced. (c) Tlie specified differentials in the established maximum rates for hourly workers to be preserved. id) All rates herein provided for shall be filed by the Regional Directors with the Bo»rd of Railroad Wages and Working Conditions. W. G. McAdoo, I) hector Geiieral of Railroads. IxTERrRETATioN No. 2 TO vSl^pple:mext Xo. T to General Order Xo. 27. AVashin(;tox, D. C, Novemher 30, 1918. Question. — Shall employees coming under the provisions of para- graph (a). Article V, Supplement No. 7 to General Order No. 27, paid on a tonnage or piecework basis and earning in excess of 43 cents per hour (the maximum rate established) receive any portion of the increase provided for, if thereby such increase would estali- lish a rate in excess of 48 cents per hour? Decision. — Paragraph (2). Article V, of Supplement No. 7 to General Order No. 27 specifically states: "Provided that the maxi- mum shall not exceed 43 cents per hour. " P'>mployees paid on a 251 tonnage or piecework basis whose average hourly earnings, per day period, equal 43 or more cents per hour are therefore not entitled to any portion of the increase, but are guaranteed not less than 43 cents per hour. The provisions of paragraph (2), Article VIII. Supplement Xo. 7 to General Order Xo. 27. protects higher rates and is to be ob- served. W. G. McAdoo. Director General of Railroads. Supplement No. 8 to General Order N"o. 27. Washington, D. C, September 1, 1918. Effective September 1, 1918, superseding General Order 27, and in lieu thereof, as to the employees herein named, the following rates of pay and rules for overtime and working conditions for all employees in the Maintenance of Way Department (except mechanics and helpers where provided for in Supplement No. 4, General Order No. 27, and clerical forces), upon railroads under Federal control are hereby ordered : Article I. — Rates of Pay. (a) For all building, bridge, painter, signal and construction, mason and concrete, water supply, maintainer, and plumber fore- men, establish a basic minimum rate of ninety (90) dollars per month, and to this basic minimum rate and all rates of ninety (90) dollars per month and above, in effect as of January 1, 1918, prior to the appHcation of General Order No. 27, add twenty-five (25) dollars per month, establishing a minimum rate of one hundred fifteen (115) dollars per month. (&) For aU assistant building, bridge, painter, signal and con- struction, mason and concrete, water supply, maintainer, and plumber foremen, and for coal wharf, coal chute, and fence gang foremen; pile driver, ditching and hoisting engineers, and bridge in- spectors, establish a basic minimum rate of eighty (80) dollars per month, and to tliis basic minimum rate and aU rates of eighty (80) doUars per month and above, in effect as of January 1, 1918, prior to the application of General Order No. 27, add twenty-five (25) dollars per month, establishing a minimum rate of one hundred five (105) dollars per month. (c) For all track foremen, establish a basic minimum rate of seventy-five (75) dollars per month, and to this basic minimum rate and all rates of seventy-five (75) dollars per month and above, in effect as of January 1, 1918, prior to the appHcation of General 252 Order No. 27, add twenty-live (25) dollars per month, establishing a minimum rate of one hundred (100) dollars per month. (d) Rates of pay for all assistant track foremen will be five (5) cents per hour in excess of the rate paid laborers whom they super- vise. (e) For all mechanics in the Maintenance of Way and Bridge and Building Departments, where not provided for in Supplement No. 4 to General Order No. 27, who were on January 1, 1918, prior to the application of General Order No. 27, receiving less than forty (40) cents per hour, establish a basic minimum rate of forty (40) cents per hour, and to this basic minimum rate and all rates of forty (40) cents per hour and above add thirteen (13) cents per hour, establishing a minimum rate of fifty- three (53) cents per hour. (/) For helpers to all mechanics in the Maintenance of Way and Bridge and Building Departments, where not provided for in Sup- plement No. 4 to General Order No. 27, who were on January 1, 1918, prior to the application of General Order No. 27, receiving less than thirty (30) cents per hour, establish a basic minimum rate of thirty (30) cents per hour, and to this basic minimum rate and all hourly rates of thirty (30) cents per hour and above add thirteen (13) cents per hour, establishing a minimum rate of forty- three (43) cents per hour. (g) For track laborers and all other classes of maintenance-of- way labor not herein named, who on January 1, 1918, prior to the application of General Order No. 27, were receiving less than six- teen (16) cents per hour, establish a basic minimum rate of sixteen (16) cents per hour, and to this basic minimum rate and all hourly rates of sixteen (16) cents per hour and above add twelve (12) cents per hour, establishing a minimum rate of twenty-eight (28) cents per hour, provided that the maximum shall not exceed forty (40) cents per hour. (h) For drawbridge tendere and assistants, pile driver, ditching and hoisting firemen, pumper engineers and pumpei-s, crossing watch- men or flagmen, lamp lighters and tenders, add to the rate in effect as of January 1, 1918, prior to the application of General Order No. 27, twenty-five (25) dollai-s per month. (i) The wages for new positions shall be in conformity with the wages for positions of similar kind or class in department Avhere created. Article II. — Monthly, Weekly, or Daily Rates. For all monthly, weekly, or daily rated employees in the departr ments herein referred to, and not othenvise provided for, increase the rates in effect as of January 1, 1918, prior to the application of General Order No. 27 on the basis of twenty-five (25) dollars per month. 253 Article III.— Maximum Monthly Rate. No part of the increases herein specified shall be applied to estab- lish a salary in excess of two hundred fifty (250) dollars per month. Article IV. — Preservation of Rates. (a) The minimum rates, and all rates in excess thereof, as herein estabhshed, and higher rates which have been authorized since Jan- uary 1, 1918, except by General Order No. 27, shall be preserved. (&) Employees temporarily or permanently assigned to higher rated positions shall receive the higher rates while occupying such positions; employees temporarily assigned to lower rated positions shall not have their rates reduced. Article V. — Exception. The provisions of this order will not apply in cases where amounts less than thirty (30) dollars per month are paid to individuals for special service which only takes a portion of their time from out- side emplojmient or business. Article VI. — Hours of Service. Eight (8) consecutive hours, exclusive of the meal period, shall constitute a day's work. Article VII. — Overtime and Calls. (a) Where there is no existing agreement or practice more favor- able to the employees, overtime shall be computed for the ninth and tenth hour of continuous service pro rata on the actual minute basis, and thereafter at the rate of time and one-half time. Even hours will be paid for at the end of each pay period ; fractions thereof will be carried forward. (b) When notified or called to work outside of estabhshed hours, employees will be paid a minimum allowance of three (3) hours. (c) Employees will not be required to suspend work during regu- lar hours to absorb overtime. Article VIII. — Promotion and Seniority Rights. (a) Promotions shall be based on ability, merit, and seniority. Ability and merit being sufficient, seniority shall prevail. The man- agement shall be the judge, subject to an appeal as provided for in Article IX. (b) The seniority rights of laborers, as such, will be restricted to their gangs, except where gang is abohshod they may displace laborers in other gangs who are junior in service. 254 (c) Except as provided for in section (&) of this article, the seniority rights of employees referred to herein to — (1) New positions, (2) Vacancies: Will be governed by section (a) of this article, and will be restricted to the maintenance division upon which employed. (d) Employees declining promotion shall not lose their seniority. {e) Employees accepting promotion will be allowed thirty (30) days in which to qualify, and failing, will be returned to former position without loss of seniority. (f) New positions or vacancies will be promptly bulletined for a period of five (5) days at the tool house or in the department where they occur. Employees desiring such positions will file their appli- cations with the designated official within that time, and the appoint- ment will be made within ten (10) days thereafter. Such position or vacancy may be filled temporarily pending assignment. The name of the appointee will immediately thereafter be posted where the position or vacancy was bulletined. ig) In reducing forces, seniority shall govern; foremen will dis- place other foremen who are their junior in service before displacing laborers. When forces are increased, employees will be retm-ned to the service and positions formerly occupied in the order of their seniority. Employees desiring to avail themselves of this rule must file their names and addresses wdth the proper official. Employees failing to report for duty or to give satisfactory reason for not doing so within seven (7) days from date of notification will be considered out of the service. (i^) Employees furloughed for six (6) months or less will retain their seniority. (i) A seniority roster of all employees in each classified depart- ment, showing name, date of entering the service, and date of pro- motion, will be posted in a conspicuous accessible place in each road- master's or supervisor's office. The names of laborers who have been in the service at least six (6) months prior to date roster is posted or revised will be shown, with their relative standing and the date they entered the service. (j) The roster will be revised and posted in January of each year, and shall be open to correction for a period of sLxty (60) days after date posted on presentation of proof of error by an employee or representative. A copy will be furnished to each foreman or duly accredited representative upon request. Article IX. — Discipline and Grievances. (a) An employee disciplined, or who considers himself unjustly treated, shall have a fair and impartial hearing, provided written 255 request is presented to his immediate superior within five (5) days of date of advice of discipline, and the hearing shall be granted within five (5) days thereafter. (b) A decision will be rendered withm seven (7) days after completion of hearing. If an appeal is taken, it must be filed with the next higher official and a copy furnished the official whose decision is appealed within five (5) days after date of decision. The hearing and decision on the appeal shall be governed by the time limits of the preceding section. (c) At the hearing, or on the appeal, the employee may be assisted by a committee of employees, or by one or more duly accredited representatives. (d) The right of appeal by employees or representatives, in regu- lar order of succession and in the manner prescribed, up to and in- clusive of the highest official designated by the raihoad to whom appeals may be made, is hereby established. (e) An employee on rec^uest wOl be given a letter stating the cause of disciphne. A transcript of the evidence taken at the investigation or on the appeal will be furnished on request to the employee or representative. (/) If the final decision decrees that charges against employee were not sustained, the record shall be cleared of the charge; if sus- pended or dismissed, the employee shaU be returned to former posi- tion and paid for aU time lost. (g) Committees of employees shaU be granted leave of absence and free transportation for the adjustment of differences between the railroad and the employee. Article X. — General Rules. (a) For main line, branch line, and yard section men, the day's work will start and end at point designated to report for duty at their respective sections or yards. (b) Employees taken from their regular assignment or outfit, to work temporarily elsewhere, wiU be furnished with board and lodging at the railroad's expense. (c) Unless they so desire, except in emergency, employees shall not be transferred from one division to another. Article XI, — Rules for Application of this Order, (a) It is not the intention of this order to change the number of days per month for monthly paid employees. The increases per month provided for herein shall apply to the same number of days per month which were worked as of Januaiy 1, 1918. 256 (h) The pay of female employees, for the same class of work, shall be the same as that of men, and their working conditions must be healthful and fitted to their needs. The laws enacted for the government of their emplo^nnent must be observed. Article XII. — Interpretation of this Order. The rates of pay and rules herein established shall be incorporated into existing agreements and into agreements which may be reached in the future, on the several railroads; and should differences arise between the management and the employees of any of the railroads as to such mcorporation, intent, or apphcation of this order prior to the creation of additional railway boards of adjustment, such (pies- tions of difference shaU l)e referred to the Director of the Division of Labor for decision, when properly presented, subject always to re- view by the Director General. Agreements or practices, except as changed by this order, remain in effect, W. G. McAdoo, Director General of Railroads. Interpretation Xo. 1 to Supplement Xo. 8 to General Order Xo. 27. Washington. D. C. Xocemhcr 23. WIS. overtime monthly, weekly or daily paid employees. Article I. Eight consecutive hours, exclusive of the meal period, constituting a day's work from the effective date of Supplement Xo. 8 to General Order Xo. 27, the increases provided for therein and applicable to monthly, weekly and daily paid employees, specified in Article I, paragraphs (a), (&), {e) and (h). and Article II of Supplement No. 8, are based upon the recognized number of working days con- stituting a calendar year (including Sundays and or holidays Avhere they have been considered a part of the employee/s assignment), and the rates of pay in effect January 1. 11)18, prior to the application of General Order Xo. 27, exclusive of overtime. The following ex- amples illustrate the method to be used in establishing the straight time hourly rate as the basis of payment for overtime service : Example (a) Employees working thirty days per month on the monthly, weekly <'i* ) If the operation of this order creates either unreasonably low, or excessively high rates, for service, individual cases and circum- stances considered, it will be the duty of the Board of Railroad Wages and Working Conditions to investigate, on complaint, and recommend equitable treatment therefor. (e) Vacations with pay are abolished, effective January 1, 1919. Article IX. INTERPRETATION OF THIS ORDER. The rates of pay and rules herein established shall be incorporated into existing agi'eements and into agreements which may be reached in the future, on the several railroads; and should differences arise between the management and the employees of any of the railroads as to such incorporation, intent, or application of this order, such question of differences shall be referred through the Director of the Division of Labor as prescribed in Supplements 6 and 6a to General Order Xo. 27 for decision, subject always to review by the Director General. Agreements or practices, except as changed by this order, remain in effect. In reaching the conclusions upon which this order is based, I have given special considsration to the problem presented of work on Sundays and holidays. I am in full sympathy, as every reasonable man must be, with the natural desire of the employees to be re- leased from Sunday and holiday labor as far as possible. Not only are employees the better for such periods of rest and recreation, but they naturally prefer for that purpose Sundays and holidays, be- cause all the habits of our people are so adjusted that lest and 273 recreation are more feasible and satisfactory on those days than on other days. I am satisfied that in the i^ast there has been a gi-eat deal of imnecessary work on Sundays and holidays, and that methods can and must be adopted to confine such work in the future to what is necessary. At the same time we must face the fact that the entire public expects the railroads to be operated on Sundays and holidays, as well as on other days; hence it is impossible to adopt any plan which will eliminate Sunday and holiday labor. This order which I am promulgating will, in itself, go far towards eliminating Sunday and holiday work wherever practicable, and towards reducing such work where it can not be eliminated to the fewest number of hours. This will result from the fact that hereafter all such work will be paid on an hourly basis instead of on a monthly basis, as has been true in the past to a considerable extent. Therefore, the employing officer will realize that he must pay additionally for every hour of Sunday and holiday work, and his anxiety to prevent umiecessar}' "expense will be a strong inducement to eliminate un- necessary work on those days. I regard this as a gi'eat step forward, and I believe I am justified in expecting that it will bring about a marked reduction, in Sunday and holiday work of an avoidable character. I propose to supplement this action by definite orders that a special study must be made for the purpose of eliminating Sunday and holi- day work wherever practicable and, where it can not be eliminated, of minimizing it to the fewest number of hours. I believe the special effort whicli will consequently be made in this direction will, coupled with the strong inducement arising from the new basis of payment, bring about an early and substantial reform in this important matter. Employees who have heretofore had to work on Sundays tind holi- days will get through this order a direct compensation for that con- dition, by reason of the fact that their hourly rates of pay in the future will be, to a large extent, substantially increased, as, from an examination of Article I, it will be seen that in determining the hourly wage a divisor of 306 days has been used, which will, in a large measure, compensate for punitive Sunday and holiday over- time. It has not been practicable to adopt a plan for paying a punitive overtime rate for time worked on Sundays and holidays. The ob- ject for such punitive allowances is to impose a penalty or punish- ment for the work to which the allowances attach. In the nature of things, it is unjustifiable to impose such punishment in respect of work which can not be avoided. Such punitive allowance is not nec- essary to cause the elimination of such work, or its reduction to a 105889°— 19 18 274 minimum, because ^liat result can and will be broug-ht about by the adoption of the hourly rates and special instructions Avhich will be issued to reduce Sunday and holiday work, where practicable. W. G. McAdoo, Director General of Railroads. Interpretation No. 1 of General Order Xo. 27. Washington, June llfy 1918. The following reconunendation of Railroad Board of Adjustment No. 1, in the matter of consiruction of General Order No. 27, relating to the bases of pay for yard engineers, yard firemen, yard conductors or foremen, and yard brakemen or helpers, is approved and will be observed in the application of rates of pay under said order : Referring to your letter of this date transmitting a communication from tlie cWef executives of tlie four organizations, asl^ing for a construction of General Order No. 27, in so far as tliis order relates to the bases of pay for yard engi- neers, yard firemen, yard conductors or foremen, and yard brakemen or helpers. As these four classes of employees had a guaranteed minimum day's pay, irrespective of how expressed in schedules, it is the judgment of this board that the increases granted by General Order No. 27 should be applied to such em- ployees upon the guaranteeil minimum day's pay of December, 191.5, in view of paragraph 8, section F, article 2, of that order, which reads as follows: " Reductions in hours between December 31, 191-5, and .January 1. 1918, are not to be regarded as increases in pay." The increases for these classes of employees should, therefore, be computed upon the table given in section B of article 2 of General Order No. 27, and it is recommended that it be so ordered. W. G. McAdoo, Director General of Railroads. Interpretation No. 2 of General Order No. 27. Washington, June llf, 1918. The following bases will be observed in the application of rates of pay under General Order No. 27 : All persons employed in any capacity, and receiving less than $250 jx'r month in salary, will receive the increases named in the Director General's General Order No. 27, unless specifically excluded therein. PASSENGER SERVICE. All conductors, baggagemen, flagmen, and brakemen paid on the mileage basis and performing more than the minimum daily mile- age will be paid under the provisions of section E, article 2. 275 All conductors, assistant conductors, ticket collectors, baggagemen, flagmen, and brakemen paid under the monthly guarantee of the eastern and southeastern territory will be paid under the provisions of section A, article 2, and the daily rate will be one-thirtieth of the monthly rate. All conductors, baggagemen, flagmen, and brakemen paid on the monthly basis will be paid under the provisions of section A, article 2. LOCAL FREIGHT SERVICE. All conductors, engineers, firemen, flagmen, and brakemen paid on the mileage basis will be paid under the provisions of section E, article 2. Local freight conductors, engineers, firemen, flagmen, and brake- men paid on the monthly basis will be paid under the provisions of section A, article 2. THROUGH FREIGHT SERVICE. Conductors, engineers, firemen, flagmen, and brakemen paid on the mileage basis will be paid under the provisions of section E, article 2. Conductors, engineers, firemen, flagmen, and brakemen paid on the monthly basis will be paid under the provisions of section A, article 2. WORK TRAINS. Conductors, engineers, firemen, flagmen, and brakemen paid on the mileage basis will be paid under the provisions of section E, article 2. Conductors, engineers, firemen, flagmen, and brakemen paid on the monthly basis will be paid under the provisions of section A, article 2. SPECIFIED TRIP RATES. In passenger, through freight, or local freight the increases in trip rates shall take the percentages applicable to each class of service respectively. SPECIAL ALLOWANCES. All arbitrary or special allowances, previousl}^ paid on the hourly basis, will be paid at the new hourly rate. Arbitraries or special allowances, previously paid on the basis of mileage, will be paid on the new mileage rates. If the schedule amount bears no relation to miles or hours, such arbitrary or special allowances will be increased in accordance with the percentage shown under section E, article 2. Engines which have come into the service since 1915, on which rates have been applied — for the purpose of computation under Gen- 276 cral Order No. 27 — consider such rates as being applicable December 31. 1915. and apply appropriate increases from January, 1918. The negotiated rate since the arbitration of the engineers and firemen in the East and West, for transfer service — for example, the $4.50 rate for engineers and the $3 rates for firemen in the western territory shall be increased under section B of article 2. Where through freight rates apply to transfer service the increases under section E, article 2, will apply. Where the guaranteed daily minimum is an arbitrary rate, and is not based on hours or miles, engineers and firemen will be paid the rat© under the provisions of section B, article 2. Where the guar- anteed minimum is based on mileage engineers and firemen shall be paid the rate under the provisions of section E, article 2, HOSTLERS. The rates in section B, article 2, shall apply to hostlers, based upon rates in effect December, 1915. W. G. McAdoo, Director General of Railroads. Interpretation No. 3 to General Order No. 27, and to Sup- plement No. 4, Addenda Nos. 1 and 2, Interpretation No. 1 AND Amendment No. 1 Thereto. Washington, D. C, September 26, 1918. method of applying increases to pieceworkers. Article I. («) The increases provided for in General Order No. 27 apply to each hour worked and not to piecework prices per item or operation. (Jb) Overtime hours, prior to August 1, 1918, vnll be paid for at the rate in effect as of December 31, 1917, and up to and including July 31, 1918; from August 1, 1918, at the rate of one and one-half times the average straight-time hourly piecework earnings for the current pay period, provided that the straight-time piecework earn- ings plus one-half additional, equals the guaranteed minimum at the hourly rate of one and one-half time. {e) Any increase in wages due to increased rates of compensation gi-anted between January 1, 1916, and December 31, 1917, shall be deducted from the amount of increase provided for in General Order No. 27, but in no case shall such deduction operate to reduce earnings based on rates in effect as of December 31, 1917. {d) In the absence of established standard hourly rates for any one or more of the seven classifi rat ions designated in Supplement No. 4, 277 the going rate in each craft in accordance with the classification exist- ing prior to the application of Supplement No. 4 for mechanics or helpers at each point on each of the several railroads shall be used as the base rate to which will be added the increases provided for in Section C, Article II, General Order No. 27. (e) Example 1. — Assume that in Yard B, 75 wood freight car builders or repairers are employed, the base hourly rates in Decem- ber, 1915, were: 15 at 32 cents per hour. 31 at 33 cents per hour. 17 at 34 \ cents per hour. 12 at 36 cents per hour. Thirty-three (33) cents thus becomes the going rate for the basis of computing the hourly increase for all wood freight-car builders or repairers in Yard B. General Order No. 27, Article II, Section C, using the going rate of 33 cents, estabhshes a rate of 46.75, or 13.75 cents increase over the December, 1915, hourly rate. Between Janu- ary!, 1916, and December 31, 1917, increases amounting to 9 cents per hour had been put into effect. The net increase established by Gen- eral Order No. 27 is therefore 4.75 cents per hour to hourly workers, and represents the total increase per hour to pieceworkers of the same class in Yard B. The same method of procedure wiU apply to each of the respective groups of employees, such as upholsterers, coach carpenters, cabinetmakers, passenger or freight steel car bodv builders or repairers, truck builders or repairers, coach painters, locomotive painters, locomotive carpenters, molders, core-makers, electricians, signal men and signal maintainers, tinners, pipe fitters, coppersmiths, sheet-metal workers, and all men classified and used as helpers. (/) Where piecework rates or pieceworkers received no increase between January 1, 1916, and December 31, 1917, it is evident that the average earnmg rate was sufficiently in excess of the hourly rate to cover any increases that may have been granted homely workers. In determining the increase to such pieceworkers, they shall receive the same increase per hour as accrues to the hourly worker under General Order No. 27, illustrated herein by example 1, paragraph {e). ig) The application of increases to machinists, boilermakers, and blacksmiths, who are on the piecework basis, shall be as above out- lined (see example 2), except where the establishment of the mini- mum rate of 55 cents per hour is less than the increase provided for in Section C, Article II, General Order No. 27, in which case the greater increase will apply. (See example 3.) (Ji) Example 2. — In December, 1915, machinists in Shop C were paid a going rate of 35 cents per hour. Section C, Article II, Gen- eral Order No. 27, establishes a rate of 49.50 cents per hour. This 278 would automatically go to the minimum rate of 55 cents per hour, or 20 cents increase over the December, 1915, hourly rate. Between January 1, 1916, and December 31, 1917, increases amounting to 9 cents per hour had been put into effect. The net increase established by General Order No. 27 is therefore 11 cents per hour to hourly workers and represents the total increase per hour to the machinists on piecework in Shop C. (i) Example 3. — In December, 1915, machinists in Shop D were paid a going rate of 42 cents per hour. The new rate provided for in Section C, Article II, of General Order No. 27, is 58.25 cents per hour, making an increase of 16.25 cents per hour over the December, 1915, hourly rate. Between January 1 , 1916, and December 31, 1917, increases amounting to 9 cents per hour had been put into effect. The net increases established by General Order No. 27 is therefore 7.25 cents per hour to hourly workers and represents the total increase per hour to the machinists on piecework in Shop D. {']) If the increases for pieceworkers under General Order No. 27, added to their average hourly straight time piecework earnings, .by pay period, do not equal the minimum hourly rates established for hourly workers of the same class, the back pay due such piece- workers, by pay periods, January 1, 1918, to July 31, 1918, inclusive, will be computed on the basis of the minimum hourly rates apphcable to the respective classes, as per Supplement No. 4. (Ji) Example 4- — Pieceworker E, guaranteed a 58 cent minimum hourly rate by Supplement 4, worked 208 straight time hours in March, 1918; his average piecework earnings for this pay period were 55 cents per hour, includmg the increase under General Order No. 27. Pieceworker E therefore receives the minimum rate of 58 cents per hour for the March pay period. (Z) Example 5. — Pieceworker F, guaranteed a 58 cent minimum hourly rate by Supplement 4, worked 208 straight time hours in March, 1918; his average piecework earnmgs for this pay period equals 60 cents per hour, including the increase under General Order No. 27. Pieceworker F, having exceeded the minimum rate of 58 cents per hour for the March pay period, receives back pay at the 60 cent rate. (m) Example 6. — Pieceworker G, guaranteed a 58 cent minimum hourly rate by Supplement 4, worked a total of 268 hours in August, 1918, divided as follows: 50 straight time hours on hourly v/ork at 58 cent rate, 158 straight time hours on piecework, average earnhigs per hour 65 cents, 20 hours' overtime on hourly work at the rate of one and one-half time, or 58 plus 29, equaling 87 cents per hour, and 40 hours' overtime on piecework, or 65 plus 32.50, equaling 97.50 cents per hour (as per Art. II, Sec. A) the total earnings for the August pay period are as follows: 279 50 horns at 58<1; per hour $29. 00 158 " " 65(t " " 102.70 20 " " 87(t " " 17.40 40 " " 97.504- " 39.00 Total 188. 10 GEXERAL APPLICATIOX OF INCREASES SUPPLEMENT 4 TO GENERAL ORDER 27. Article II. {a) The increases provided for in Supplement No. 4 to General Order No. 27 apply only to hourly, daily, weekly, or monthly rates, with the proviso that in no case shall a pieceworker be compensated for service renderetl from January 1, 1918, to July 31, 1918, or there- after, at a less rate per hour, for each straight time hour worked, than the minimum rate established for the hourly worker as per the respective classifications. Effective August 1, 1918, the one and one- half time rate for overtime apphes to pieceworkers as well as to hourly rated employees, (&) Increases provided for in General Order No. 27 for hourly, daily, weekly, and monthly paid employees, were canceled with the issuance of Supplement No. 4, and m no manner refer to or affect the mcreases provided for in Supplement No. 4 to General Order No. 27. (c) The hours of service and overtime provisions of Supplement 4, Article IV, Section 2, do not apply to supervisory forces on monthly salary, referred to in Supplement 4, Article III, Section 5. (d) Monthly supervisory forces specified in Supplement 4, Article III, Section 5, assigned to mspect new equipment imder construc- tion by contract, shall receive the salary increase of Forty (S40) dollars per month. (e) Excepting salaried supervisory forces and coach cleaners, employees comuig within the classifications specified in Supple- ment No. 4 to General Order No. 27, shall be paid for overtime as provided in Section 2, Article IV of Supplement No. 4. (/) Employees voluntarily leaving the service. — The amount ac- cruing under the provisions of Supplement 4 to General Order No. 27 wiU not accrue to those employees who left the sei-vice voluntarily to accept or secure employment at some other point on the same railroad or on another railroad, or elsewhere, because remaining in the sei-vice at the point employed, unless transferred, was the con- sideration upon which the promise to make the increases effective as of January 1, 1918, was based. 280 Article III. RA.TES BASED UPON YEARS OF EXPERIENCE. Supplement No. 4, Article II, Sections 2, 2-A, and 2-B. (a) Employees performing work recognized as mechanics' work in the respective trades, who, by agreement with duly authorized committees representing the craft or crafts, have had their rates leveled up to that of the mechanic, shall receive the mechanics' rate as per Article II, Sections 1 and 1-A; otherwise Article II, Sections 2, 2-A and 2-B will apply. The period of experience on mechanics' work, in the trade employed, shall be cumulative. Example 7. — Employee H worked: 12 months on machinists work for railroad C. 6 " " " " in navy yards D. 12 " " " " in mauiifacturing plant E. 18 " " " " for railroad by whom now employed. Total, 4 years. Such employees should be paid the machinists' rate. (h) Nothing in the above section shall be construed to mean that mechanics of the respective trades who have qualified a,s such in other industries, shall be paid less than the muiimimi rates specified in Article II, Sections 1 and 1-A of Supplement No. 4, upon entering railroad service. Article IV. EXPENSE ALLOWANCE. Sections 4 and 5, Article IV, Sup. No. 4 to General Order No. 27. The allowance for expenses provided for in Section 4, Supplement No. 4 to General Order No, 27, is the same as shoAvii m Section 5, and is at the rate of $2.00 per day for three meals and lodging; 50 cents per meal, 50 cents for lodging. It is not intended to make tliis feature retroactive prior to August 1, 1918. Article V. SUPERVISORY FORCES. Section 4, Article III, Supplement 4 to General Order 27. This section applies to minor supervisory forces who are held responsible for the work of their gang, have been so recognized, and who shall receive 5 cents per hour in excess of the minimum hourly rate estabhshed for the craft. Article YI. WHEEL SHOP employees. General Order 27, -Supplement 4, .Vrticle I, Section 1 and 1-B. {a) Employees boring and turning wheels, and turning axles in wheel shop, are classified as macliinists by Section 1, Article I of Supplement No. 4 to General Order No. 27. 281 (h) Employees pressing on and off wheels are classified as machin- ists' helpers by Section 1-B, Article I of Supplement No. 4 to Gen- eral Order No. 27, and receive an increase of 13 cents per hour over rate in effect January 1, 1918, prior to appUcation of General Order No. 27. vnth a minimum guaranteed rate of 45 cents per hour. Article VII. FLUE WORK. Supplement No. 4, Article I, Section 2 and 2-B. (a) Flue work, boiler department, includes flue Aveldei-s under boiler foremen. (b) Heaters and lieipers assisting welders shall be classed as boiler- maker helpers. Article VIII. RIVET HEATERS. (a) Include rivet heaters in Supplement No. 4, Ai-ticle I, Section 2-B. Rivet heaters under 18 years of age shall be paid 25 cents per hour until they reach the age of 18, and thereafter helpers' rates. (h) Rivet heaters in Supplement No. 4, Article I, Section 6-B, under 18 years of age shall be paid 25 cents per hour until they reach the age of 18, and thereafter helpers' rates. Article IX. ELECTRICAL WORKERS. Supplement No. 4, Article I, Section 5 and 5-A. It is not necessary for an electrical worker to be competent to perform aU items of work specified. Employees skilled in any of this work shall be paid the rate estabhshed for the respective class. Article X. MATERIAL CARRIERS AND HELPERS. (a) Material carriers in Supplement No. 4, Article I, Section 6-B, applies only to employees regularly engaged in selecting and dis- tributing material to mechanics in car department. (b) Laborers shall not be classified as helpers in the seven basic trades, unless they actually perform work recognized as helpei^* work. Article XI. LOCOMOTIVE CRANE OPERATORS. Section 6, .Vrticle I, Supplement No. 4 to General Order No. 27. Locomotive crane operators, when employed in the car and locomo- tive shop yards, shall be considered under the same classification as 282 "wrecking derrick engineer" in Section 6, Article I, Supplement No. 4 to General Order No. 27, and receive 13 cents per hour over the rate in effect Januar}^ 1, 1918, prior to the appHcation of General Order No. 27, with a guaranteed niuiimum of 58 cents per hour. (Where employed in other departments they shall be considered under the same classification as pile driver, ditching and hoisting engineers, in Article I, Section b of Supplement No. 8 to General Order No. 27.) Article XII. DERRICK ENGINEER. Section 6, Article I, Supplement No. 4 to General Order No. 27. "Wrecking Derrick Engmeers" covers the engineer operating a power-driven crane employed principally for clearing up wrecks. Ajrticle XIII. MOLDERS AND HELPERS. CUPOLA TENDERS. Supplement No. 4, Article I, Sections 7 and 7-B. (a) A cupola tender is interpreted to be one who supervises the cupola and prescribes the charge, the fuel to be used and drawing the melt. (h) Cupola tender helpers shall receive an increase of 13 cents per hour over rates in effect as of January 1, 1918, prior to the applica- tion of General Order No. 27, with a guaranteed minimum rate of 45 cents per hour. (g) Employees in charge of brass melting in foundry shall receive not less than the molder's minimum rate, and helpers the same as helpers in Section (^) of this Article. Article XIV. These interpretations shall apply to all addenda, amendments, and interpretations to Supplement No. 4 to General Order No. 27, from their respective effective dates. W. G. McAouo, Director General of Railroads. Interpretation No. 4 to General Order No. 27. Washington, D. C. Novernher 29, 1918. Employee's claim.— That he was in the employ of the railroad from a date prior to January 1. 1918, up to 6 a. m-, June 1. 1918. 283 Employer's claim.— That employee's tour of duty was from 6 p. m. one day until 6 a. m. the next, and that the last "day" on which the employee worked was May 31, 1918, although his hours extended to 6 a. m., June 1, 1918 ; that the employee left the service voluntarily. Decision. — Employee having been in the service on May 25, 1918, the date of the issuance of General Order No. 27, is entitled to back pay for services rendered from January 1, 1918, to the date he left the service. W. G. McAdoo, Director General of RoJWroads. Interpretation No. 5 to General Order No. 27. Washington, D. C, Navember ^P, 1918. Employee's claim.— On and prior to December 31, 1915, employee occupied position as agent at a certain salary. In July, 1917, his position was changed at the same salary and continued until June, 1918. Employee claims the increase afforded by General Order No. 27 upon his salary as of December 31, 1915. Employer's claim. — The position occupied by the employee on May 25, 1918, was at a lower salary on December 31. 1915. than was paid to the position occupied by the employee on May 25, 1918; therefore, the increase afforded by General Order No. 27 should be based upon the salary of the position and not upon the salary of the man. Decision.— General Order No. 27, Article II, Section F, para- graph 1, explicitly provides that the wage runs with the place. Therefore, the increase should be applied to the salary which the po- sition paid on December 31, 1915. W. G. McAdoo, Director General of Railroads. Interpretation No. 6 to General Order No. 27. Washington, Decemher 17 ^ 1918. Position of employee. — A station agent on a certain railroad has been paid a salary of $20 per month, and it is claimed by this em- ployee that Article II, section F, paragraph 12, of General Order No. 27, does not apply to his case, in that the service he renders is not special service., as he is performing all work of an agent, and is subject to call the entire day, performing work as it transpires. Position or the company. — The company claims that the em- ployee in question devotes only a portion of his time to the service 284 of the compan}^ in tlie capticitv of station agent without telegraph service, and that he is engaged in business in the town in which em- ployed, and that he is not entitled to an increase in wages under Article II, section F, paragraph 12, of General Order No. 27. The question for interpretation is — In view of the fact that the claimant performs all of the work required at the station employed and is only paid $20 per month, is he entitled to an increase under General Order No. 27 ? Decision. — The claimant is performing special seiwice, and is ex- cluded from increase in wages by Article II, paragraph 12, section F, of General Order No. 27, and paragraph (a). Article IV, Supple- ment 11, of (leneral Order No. 27, which reads as follows : "The provisions of this order will not apply in cases where amounts less than thirty ($30.00) dollars per month are paid to individuals for special service which only takes a portion of their time from outside employment or business." ^^\ G. McAdoo, Director' General of Railroads. Intebpretatiox No. 7 to General Order I^J^o. 27. Washington, December 17, 1918. Claim of emplotee. — Prior to March 1, 1918, the claimant was employed as assistant passenger and ticket agent at a salary of $80 per month. His duties consisted of selling tickets, soliciting pas- senger business, and acting as telegraph operator. On March 1, 1918, the position of assistant being closed, the employee claims "that he was oiRcially checked in as city passenger and ticket agent by the company's traveling auditor, increasing his duties due to the fact that he had to handle both positions. The employee claims that he understood from telephone conver- sation Avith tlie assistant passenger agent that he M'ould be checked in temporarily, as it had not been definitely decided who would be appointed to the position. The employee served in this capacity from March 1, 1918, until May 1, 1918, at which time consolidation of certain ticket offices made it necessary for him to go to the con- solidated ticket offices. The claim of the employee is that he did not receive the salary of the city passenger ticket agent, which was $120 per month, which rate, under General Order No. 27, would have been advanced to $131.75, and that he was only paid his salaiy that he was receiving as assistant. He further claims that if he had been paid the salary of the city passenger ticket agent for the time served in that capacity, he would 285 have been transferred to the consolidated ticket office at the same rate, as this was the practice followed in transferring other em- ployees to the consolidated ticket offices. In other words, the employee claims that his present rate of pay should be $131.75 per month instead of $112.70, which rate was ax^plied in accordance with General Order No. 27 to the position which formerly paid $80 per month. Claim of CoMPANY.^The railroad company claims that the em- ployee was assigned to the position of city passenger and ticket agent temporaril3^ and that they did not consider that he was entitled to an increase based upon the rate formerly paid this position. The question for interpretation is: In view of the fact that the employee was performing the work of city passenger and ticket agent and not receiving the rate applied to this position, should his rate under the provisions of General Order No. 27 be based on the rate formerly paid to the position he was filling ? Decision. — The claimant Avas from March 1, 1918, until the date of the consolidation of the ticket offices. May 1, 1918, in charge of the office and perfonned the duties of city ticket agent, and is therefore entitled to the rate paid that position plus increase in accordance with the provisions of General Order No. 27. W. G. McAdoo, Director Generol of Railroads. General Order No. 28. Washington, D. C, May 25, 1918. Whereas it has been found and is hereby certified to the Interstate Commerce Commission that in order to defray the expenses of Fed- eral control and operation fairly chargeable to railway operating ex- penses, and also to pay railway tax accruals other than war taxes, net rents for joint facilities and equipment, and compensation to the car- riers, operating as a unit, it is necessaiy to increase the railway oper- ating revenues, and Whereas the public interest requires that a general advance in iiU freight rates, passenger fares, and baggage charges on all traffic carried by all railroad and steamship lines taken under Federal con- trol under an act of Congress approved August 29, 1916, entitled "An act making appropriations for the support of the Army for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and for other purposes," shall be made by initiating the necessary rates, fares, charges, classifications, regulations, and practices by filing the same with the Interstate Coimnerce Commission under authority of an act of Congress approved March 21, 1918, entitled 286 " An act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes." Now, therefore, under and by virtue of the provisions of the said act of March 21, 1918, it is ordered that all existing freight rates, pas- senger fares, and baggage charges, including changes heretofore pub- lished but not yet effective, on all traffic carried by all said railroad and steamship lines under Federal control, wliether the same be car- ried entirely by railroad, entirely by water, or partly by railroad and partly by w^ater, except traffic carried entirely by water to and from foreign countries, be increased or modified, effective June 25, 1918, as to freight rates and effective June 10, 1918, as to passenger fares and baggage charges, to the extent and in the manner indicated and set forth in the " Exhibit " hereto attached and made part hereof, by filing schedules with the Interstate Commerce Commission effec- tive on not less than one day's notice. Given under my hand this the 25tli day of May, 1918. W. G. McAdoo, Director General of Railroads. Freight Eates. Section 1. — class rates (domestic). {a) All interstate class rates shall be increased twenty-five (25) per cent. {h) All intrastate class rates shall be increased twenty-five (25) per cent where there are no interstate class rates published between the same points, and shall be governed by the classification, viz: Official classification, southern classification, or western classifica- tion, exceptions thereto and minimum weights which generally gov- ern the interstate rates in the same territory, except that the Illinois classification will be used between points in the State of Illinois. (c) All intrastate class rates shall be canceled where there are interstate class rates published between the same points and the interstate rates as increased by paragraph {a) shall apply- {d) After such increase of twenty-five (25) per cent no rates shall be applied on any traffic moving under class rates lower than the amounts in cents per 100 pounds for the respective classes as shown below for the several classifications. Any article, on which excep- tions to any classification provides a different rating than as shown in the classification to which it is an exception, will be subject to the minimum as provided below for the class provided therefor in the classification proper : 287 Official classification. Classes 12 3 4 5 6 Rates 25 21i 17 m 9 7 Southern classification. Classes 1 2 3 4 5 GABCD Rates 25 214 19 16 13 11 9 10 74 6^ Western classificati&n. Classes 1 2 3 4 5ABCDE Rates 25 21 174 15 31 12i 94 74 64 5 Illinois classification. Classes 123456789 10 Rates 25 21 17i 15 11 124 9 74 6i 5 Section 2. — commodity rates (domestic). («.) Interstate commodity rates on the following articles in car- loads shall be increased by the amounts set opposite each : Commodities. Increases. Coal— Wliei-e rate is to 49 cents per ton__^ 15 cents per net ton of 2,000 pounds. Where rate is 50 to 99 cents per ton__' 20 cents per net ton of 2,000 pounds. Where rate is $1 to $1.99 per ton ' 30 cents per net ton of 2,000 pounds. Where rate is $2 to $2.99 per ton * 40 cents per net ton of 2,000 pounds. Where rate is $3 or higher per ton ^ 50 cents per net ton of 2,000 pounds. Coke- Where rate is to 49 cents per ton_ * 15 cents per net ton of 2,000 pounds. Where rate is 50 to 99 cents per ton_ ^ 25 cents per net ton of 2,000 pounds. Where rate is $1 to $-1.99 per ton MO cents per net ton of 2,000 pounds. Where rate is $2 to $2.99 per ton ' 60 cents per net ton of 2,000 pounds. Where rate is $3 or higher per ton__.^ 75 cents per net ton of 2,000 pounds. Ores, iron 30 cents per net ton of 2,000 pounds : except that no increase shall be made in rates on ex-lalie ore that has paid one increased rail rate before reaching lake vessel. Stone, artificial and natural, building and monumental, except carved, lettered, pol- ished, or traced Two (2) cents per 100 pounds. Stone, broken, crushed, and ground One (1) cent per 100 pounds. Sand and gravel One (1) cent per 100 pounds. Brick, except enameled or glazed Two (2) cents per 100 pounds. Cement, cement plasters, and plaster Two (2) cents per 100 pounds. Lime One and one-half (14) cents per 100 pounds. 1 Wliei-e rates have not been increased since June 1, 1917, the increase to be made now shall be determined by first adding to the present rate fifteen (15) cents per ton, net or gross as rated, or if an increase of less than fifteen (15) cents per ton, net or gross as rated, has been made since tliat date, then by first adding to the present rate the difEerence between the amount of that increase and fifteen (15) cents per ton, net or gross as rated ; and to the rates so constructed the above increases shall now be added. WTiere rates from producing points or to destination have been based on fixed differ- entials in cents per ton, such differentials to be maintained, the increase to be figured ou the highest rated point or group. 288 Lumber and articles taking same rates or arbitraries over lumber rates; also other forest products, rates ou which are not higher than on Utm- Ifjer Twenty-five (25) per cent, but not ex- ceeding an increase of five (5) cents per 100 pounds. Grain, wheat Twenty -five (25) per cent, but not ex- ceeding an increase of six (6) cents per 100 pounds. Other grain New wheat rates. Flour and other mill products Twenty-five (25) per cent, but not ex- ceeding an increase of six (6) cents per 100 pounds and increase shall be not less than new rates on wiieat. Q^j^tom Fifteen (15) cents per 100 pounds. Cotton linters ^'ew cotton rates. Live stock Twenty-five (25) per cent, but not ex- ceeding an increase of seven (7) cents per 100 pounds, where rates are published per 100 pounds, or $15 per standard 36-foot cai- where rates are published per car. Packing - house products and fresh Twenty -five (25) per cent, except that mgats. the rates from all Missouri River points to Mississippi River territory and east thereof shall be the same as the new rates from St. Joseph, Mo. Bullion, base (copper or lead), pig Twenty-five (25) per cent, except- or slab and other smelter products. 1. That rates from producing points in the States of Arizona, California, Idaho, Montana, Nevada, New Mex- ico, Oregon, Utah, and Washington to New Yoi-k, N. Y., shall be sixteen dollars and fifty cents ($16.50) per net toil with establislied differentials to other Atlantic seaboard points, and 2. Rates from points in Colorado and El Paso, Tex., to Atlantic seaboard points shall be increased six dollars and fifty cents ($6.50) per net ton. Separately established rates used as factors in making through rates to tlie Atlantic seaboard shall l)e in- creased in amounts sufficient to pro- tect the through rates as above in- • creased. Sugar, including syrup and molasses Twenty-five (25) per cent, except— where sugar rates apply thereon. 1. AVhere the Official Classification ap- plies, 5th class rates as increased will apply. 289 2. From points east of the Indiana-Illi- nois State line to points west of the Mississippi River, rates will con- tinue to be made on combination of local rates or of proportional rates if published, to and from the :Missis- sippi River ; except that from points on the Atlantic seaboard to the Missouri River, Kansas City, Mo., to Sioux City, Iowa, inclusive, es- tablished differentials over the in- creased rates from New Orleans, La., shall be maintained. 3. From points in the States south of the Ohio River and east of the Mis- sissippi River, also from points in the States of Louisiana and Texas, rates shall be increased : To Chicago, 111., twenty-two (22) cents per 100 pounds ; to St. Louis, Mo., twenty- seven and one-half (27^) cents per 100 pounds ; to other points west of the Indiana-Illinois State line and west of the Mississippi River, ex- cept points in Arkansas, Louisiana, and Texas, twenty-tvv'o (22) cents per 100 pounds ; to points on and north of the Ohio River and east of the Indiana-IUinois State line rates shall be increased to maintain the former established relation to the rates to such points from producing points on Atlantic seaboard. 4. From producing points in Colorado, Wyoming, Montana. Kansas, and Ne- braska to Missouri River territory and points in Arkansas, Oklahoma, Louisiana, and Texas and points east thereof twenty-two (22) cents per 100 pounds. 5. From points in Idaho and Utah to points named in paragraph (3) rates shall be fifteen (15) cents above the rates from eastern Colo- rado. 6. From points in California to points taking Missouri River rates and points related thereto under the Commission's Fourth Section Orders, and to points east of the Missouri River, twenty-two (22) cents per 100 pounds. 105889°— 19 19 290 (5) Interstate commodity rates not included in the foregoing list shall be increased twenty-five (25) per cent. ((?) Intrastate commodity rates shall be increased as shown in paragraphs (a) and (5) of this section where there are no interstate commodity rates published on substantially the same commodities between the same points, and shall be subject to the minimum weights applicable on interstate traffic in the same territory. (d) Intrastate commodity rates shall be canceled where inter- state commodity rates are published on substantially the same com- modities between the same points, and the interstate rates as increased by paragraphs (a) and {h) of this section shall apply. (e) In applying the increases prescribed in this section the in- creased class rates applicable to like commodity descriptions and minimum weights between the same points are not to be exceeded, except that the increases in rates on sugar in carloads shall be made as expressly provided in paragraph (a) of this section. Section 3. — export and import rates. All export and import rates shall be canceled and domestic rates applied to and from the ports. Section 4. — filing intrastate tariffs with interstai-e commerce COMMISSION. (a) All intrastate rates and all rates for transportation by water, which are to be increased under this order, if not now on file, except rates canceled under paragraph (c) of section 1 and paragraph (d) of section 2, shall be immediately filed with the Interstate Commerce Commission. (6) All items which are confined in their application to intra- state traffic, but are now carried in tariffs on file with the Interstate Commerce Commission, if not canceled under paragraph (c) of sec- tion 1 and paragraph (d) of section 2, shall be made applicable to all traffic. Section 5. — minimum charges. (a) The minimum charge on less than carload shipments shall be as provided in the classification governing, but in no case shall the cliarge on a single shipment be less than 50 cents. (b) The minimum charge for carload shipments shall be $15 por car. Does not apply to charges for switching service. 291 Section 6. — ^disposition of fractions. In applying rates, fractions shall be disposed of as follows : {a) Kates in cents or in dollars and cents per 100 pounds or per package: Fractions of less than one- fourth or 0.25 to be omitted; fractions of one-fourth or 0.25, or greater, but less than three-fourths or 0.75 to be shown as one-half; fractions of three-fourths or 0.75, or greater, to be increased to the next whole figure. (6) Eates per ton: Amounts of less than 5 cents to be omitted; amounts of 5 cents or greater, but less than 10 cents, to be increased to 10 cents. (c) Rates per car: Amounts of less than 25 cents to be omitted; amounts of 25 cents or greater, but less than 75 cents, to be shown as 50 cents; amounts of 75 cents or gi'eater, but less than $1, to be increased to $1. Section 7. — observance of differentials. In establishing the freight rates herein ordered, while established rate groupings and fixed differentials are not required to be used, their use is desirable, if found practicable, even though certain rates may result which are lower or higher than would otherwise obtain. Passenger Fares and Baggage Charges. SECTION 8. This order shall apply to all the passenger fares, both interstate and intrastate, of the railroads under Federal control. No existing fare equal to or in excess of three (3) cents per mile shall be reduced. All fares now constructed on a lower basis than three (3) cents per mile shall be advanced to the basis of three (3) cents per mile. All fares which are on a lower basis than the said existing or advanced fares, as the case may be, such as mileage or excursion tickets, shall be discontinued. These requirements are subject to the following- exceptions : {a) The provisions of sections 1 and 22 of the act to regulate commerce, which authorize free or reduced fares or transportation, may be observed, except — First. That no mileage ticket shall be issued at a rate that will afford a lower fare than the regular one-way tariff fare, and except — Second. That excursion tickets may be issued only to the extent and on the terms set forth in paragraphs {h) and (er cent of the normal one-way passenger fare, with minimum of fifteen (15) cents per 100 pounds and minimum collection of twenty- five (25) cents per shipment. SECTIOX 14. Tickets purchased prior to June 10. 1918. will not be honored for passage on and after that date, except — (a) Passengers en route on Jvme 10. 1918, on one-way tickets will be carried to destination by continuous passage without additional charge. (h) Eound-trip tickets, portions of which have been used prior to June 10, 1918, or held by passengers en route on June 10, 1918, shall be honored in accordance with original tariff conditions under which sold without additional payment except that they shall be subject to the same requirements as one-way tickets in respect of additional payment for passage in sleeping or parlor cars as prescribed in sec- tion 10. Tickets made invalid for passage by this order will be redeemed from original purchasers as follows: Unused tickets will be redeemed at amount paid therefor. Partially used one-way tickets will be redeemed by charging tariff fare at time of journey for portion used and refunding difference between such amount and fare at which sold. 294 In redemption of mileage, scrip, or credential forms the purchaser sliall be given the benefit for the distance traveled of a net basis proportionate to that which would have applied had the entire book been used according to its contract, ^ SECTION 15. All passenger fares lower than those hereinbefore prescribed, such as mileage, party, second-class, immigrant, convention, excursion, and tourist fares, shall be discontinued until further notice, except that tourist fares shall be reestablished as prescribed in section 8, paragraph (h) hereof. SECTION 10. Tariff provisions intended to assure the long haul to carriers, and which prevent the free interchange of traffic, shall be eliminated. SECTION 17. Stop-overs on one-way tickets, side trips at free or reduced fares, discounts by use of excess-baggage permits or excess money coupon books, and the sale of one-way tickets bearing limit in e::cess of time necessary to make trip by continuous passage shall be discontinued. SECTION IS. Optional routes may be used only when specified in tariffs. SECTION 10. In publishing fares and charges under this order, tariffs may be used which increase the present fares by fixed percentage to bring them to the bases authorized herein, even though the actual fares so constructed may be fractionally more or less than three (3) cents per mile. General. SECTION 20. Where the Interstate Commerce Commission prior to the date hereof has authorized or prescribed rates, fares, and charges, which have not been published at the date of this order, the rates, fares, or charges initially established hereunder by applying the increases herein prescribed to the existing or published rates, fares, or charges may be subsequently revised by applying the increases prescribed herein to the rates, fares, and charges so authorized or prescribed by the Interstate Commerce Commission. 295 SECTIOX 21. All schedules, viz, tariffs and supplements, published under the provisions of this order shall bear on the title-page the following, in bold-face type: " The rates ^ made effective by this schedule are initiated by the President of the United States through the Director General, United States Eailroad Administration, and apply to both interstate and intrastate traffic. " This schedule is published and filed on one day's notice with the Interstate Commerce Commission under General Order No. 28 of the Director General, United States Eailroad Administration, dated May 25, 1918." Supplement No. 1 to General Order No. 28. Washington, D. C, JuTie 12, 1918. It is ordered that General Order No. 28, be, and the same is hereby, supplemented by amending the terms and provisions of the exhibit attached thereto as follows: Paragraphs (&) and {c) of section 1, paragraphs {c) and {d) of section 2, and paragraph (&) of section 4 are canceled. Paragraph {a) of section 1 is amended to read as follows: (a) All class rates, both interstate and intrastate, shall be increased twenty- five (25) per cent, except that between points in the State of Oklahoma the class rates for single and joint lines prescribed by the Interstate Commerce' Commission for use between Shreveport, La., and points in Texas common- point territory, as shown on pages 345 and 346 of the fbrty-eighth volume of Interstate Commerce Commission reports, plus twenty-five (25) per cent, shall be applied. Paragraph {d) of section 1 is amended to read as follows: id) After such increase no rates shall be applied on any traffic moving under class rates lower than the amounts .in cents per 100 pounds for the respective classes as sho\NTi below for the several classifications. The minimum rate on any article shall be the rate for the class at which that article is rated in the classification shown below applying in the territory where the shipment moves. Official classification. Classes 12 3 4 5 6 liates 25 21* 17 12i 9 7 South ern classifica tion. Classes l2345ejABCD Rates 25 21i 19 10 13 11 9 10 H 6* ^ On passenger tariffs use word "fares." On baggage tariffs use word "charges. B G D E 9 T* 6* 5 7 S 9 10 9 7i 6A 5 296 Western chisslflcaUon. Classes 1 2 3 4 5 A Rates 25 21 171 3") 11 12} Illinois classification. Classes 12 3 4 5 6 Rates 25 21 17i 15 11 12J Paragraph (a) of section 2 is amended to read as follows: (a) Commodity rates, both interstate aud intrastate, on the following articles, applicable on carloads, except as otherwise provided, shall be increased by the amounts set opposite each : Commodities. Increases Coal : Where rate is to 49 cents per ton 15 cents per net ton of 2,000 ix)unds. Where rate is 50 to 99 cents per ton 20 cents per net ton of 2,000 pounds. Where rate is $1 to $1.99 per ton 30 cents per net ton of 2,000 pounds. AVhere rate is $2 to $2.99 per ton 40 cents per net ton of 2,000 pounds. Where rate is $8 or higher per ton 50 cents per net ton of 2,000 pounds. Where rates have not been increased since June 1, 1917, the increase to be made now shall be determined by first adding to the present rate fifteen (15) cents per ton, net or gross as rated, or if an increase of less than fifteen (15) cents per ton, net or gross as rated, has been made since that date, then by first adding to the present rate the difference between the amount of that in- crease and fifteen (15) cents per ton, net or gross as rated; and to the rates so constructed the above increases shall now be added. Whei'e rates from producing points or to destinations have been based on fixed differentials in cents per ton, such differentials to be maintained, the increase to be figured on the highest rated point or group. Commodities. Increases. Coke : Where rate is to 49 cents per ton 15 cents per net ton of 2,000 pounds. Where rate Is 50 to 99 cents per ton 25 cents per net ton of 2,000 pounds. Where rate is $1 to $1.99 per net ton__40 cents per net ton of 2,000 pounds. AVhere rate is $2 to $2.99 per net ton__60 cents per net ton of 2,000 pounds. Where rate is $3 or higher per ton 75 cents per net ton of 2,000 pounds. ANhere rates have not been increased since June 1, 1917, the increase to be made now shall be determined by first adding to the present rate fifteen (15) cents per ton, net or gross as rated, or if an increase of less than fifteen (15) cents per ton, net or gross as rated, has been made since that date, then by first adding to the present rate the difference between the amount of that in- crease and fifteen (15) cents per ton. net or gi-oss as rated; and to the rates so constructed the above increases shall now be added. Whex-e rates from producing points or to destinations have been based on fixed differentials in cents per ton, such differentials to be maintained, the increase to be figured on the highest rated point or group. Commodities. Increases. Ores, iron 30 cents per net ton of 2,000 pounds; except that no increase shall be made in the rates on ex-lake ore that has paid one increased rail rate before reaching lak(.' vessel. Stone, artificial and natural, building and monumental, except carved, let- tered, polished, or traced Two (2) HILLS ANO ACCOUNTS. AYashington, June 12, 191 S. Efiective July 1, 1918, the folloAving regulations shnll govern the settlement of all inter-road bills, statements, and accounts rendered by one carrier under Federal control against or for account of an- other carrier under such control. 1. Settlements by vouchers and the drawing of drafts in settlement of individual inter-road bills, statements, and accounts rendered by one carrier under Federal control against another carrier under such control, except as provided for in paragraph 2 hereof, shall be dis- continued. 2. The regulations herein prescribed shall not include : (a) Settlement of accounts between a carrier under Federal con- trol and a carrier not under such control. {h) Settlement of accounts between carriers under Federal con- trol for transactions which do not properly belong on the Federal books of either carrier interested. 3. Each bill, statement, or account made and rendered by one car- rier under Federal control against or in favor of another carrier under such control, and forwarded on and after July 1. 1918, shall be plainly stamped on the face thereof, as follows: "Included in settle- ment, month of . 191__." Such stamp shall indicate the month in which the amount represented by the account will be in- cluded for settlement hj the carrier rendering the account, and it shall be included in the same month's settlement account by the re- ceiving carrier. Xo such bill, statement, or account made ancX rendered in one month shall be back-dated for a prior month. 4. On the first of each. month each carrier shall prepare and render each other carrier with which it has inter-road transactions, as a basis for a settlement for the month just ended, a stateuient of debits r.nd credits, in abstract, showing the nature and total of each bill, statement, or acc(Mmt forwarded by it to each other carrier during the preceding month. 5. There shall be opened as of July 1, 1918, on the Federal books of each carrier, a clearance or settlement account with each other car- rier mider Federal control with which it has inter-road transactions. 6. As inter-road bills, statements, or accounts are made and ren- dered they shall be charged or credited as the case may be, through the clearance or settlement account prescribed in the preceding ])aragraph. . 1058S9°— 19 20 306 7. As inter-road bills, statements, or accounts are received they shall be — (a) Examined as to correctness, as prescribed in General Order Ko. 20. (5) Charged or credited to the appropriate operatino; or other account. (c) Credited or charged (as the case may be) by the receiving carrier to the carrier originating the account through the appropriate clearance or settlement account prescribed in paragraph 5 hereof. 8. The total of each statement for a given month shall be accepted as rendered, and on or before the 15th day of each month subsequent to that for which such statement was rendered the creditor carrier shall draw upon the debtor carrier for the balance between the two statements exchanged by them. 9. In the event the statement referred to in paragraph 4 indicates that the originating carrier has charged or credited the other carrier with a bill, statement, or account which has not been received, the carrier to which the statement is rendered shall accept the account and credit or debit the originating carrier therewith to the debit or credit of a suspense account. Such receiving carrier shall immedi- ately take the matter up with the originating carrier for the purpose of olcating the missing bill, statement, or accoimt. If it be found that such amount was included in the statement in error, adjustment shall be made therefor in a subsequent statement. If manifest errors be found in such statements by a receiving carrier, the attention of the originating carrier shall be called thereto and such error or errors shall be adjusted in the statement for the subsequent month. W. G. McAdoo, Director' General of Ra>J roads. General Order No. 31. Washixgtox, D. C, June 12, 1918. Effective July 1, 1918, the following rules and regulations shall goA-ern the accounting for the use of equipment or facilities of one carrier under Federal control by or for the account of another carrier under such control, provided nothing herein contained shall be con- strued to warrant the discontinuance of the keeping, rendition, and settlement of such accounts by a carrier under Federal control in favor of or against a carrier not under Federal control, in the same manner as heretofore. T. HIRE OF rRETGlIT AXD PASSENGER TRAIN EQUIPMENT. 1. The practice of recording, computing, and paying per diem, mileage, or rent:il for the use of freight nnd passenger train cars of 307 one carrier under Federal control by or for account of another carrier under Federal control, and the adjustment of differences, reclaims, etc., between such carriers which clearly relate to transac- tions incurred on or after January 1, 1918, shall be discontinued. 2. Junction cards, interchange reports, location records, and all other records and reports necessary to determine the location of equipment shall be kept, rendered, and compiled as heretofore. II. JOIXT FACILITIES BILLS FOR USE OF, 3. Effective with costs incurred on and aft-er July 1, 1918, bills rendered by one carrier under Federal control agaiiist anjother carrier under such control for maintaining and operating (including taxes and rental) tracks, yards, terminals and other facilities, includ- ing costs to operate equipment used therein, shall be computed, rendered, charged, and paid on the following bases : (a) In cases where the tenancj^ is not changed under Government operations: The total cost of maintenance, operation, taxes, and rental, as provided for under existing agreements, and the amounts thereof borne by each user, for a period not less than six months ended December 31, 1917, shall be determined by the owning or operating carrier. From such costs the percentage of the total borne by each user to the total costs shall be determined. The percentages thus determined shall be applied monthly to the total costs incurred on and after July 1, 1P18, and bills shall be rendered and paid on the results thus obtained. (b) In cases where tenants or users are admitted to facilities not heretofore jointh* used: Federal managers of the facilities to be jointly used shall determine, as between themselves, a fair and equi- table arbitrary basis for the apportionment of the total costs of main- tenance, operation, taxes, and rental which should be paid by each tenant. Such basis shall thereafter during the period of Federal control be used by the owning carrier as a basis for preparation and rendition of bills against the tenants or users, and such tenants or users shall pay such bills as rendered. (c) In cases where the number of tenants or users of facilities now used by tenants under agreements with owners is increased or de- creased: The literal compliance with the terms of such agreements shall be temporarily suspended for the period of Federal control, and a fair and equitable basis of use shall be determined as pre- scribed in paragraph (h) preceding, except that due regard shall be given to the terms of existing agreements in fixing such arbitrary basis. (d) In cases where a lump-sum charge has been made by an own- ing or operating carrier which is under Federal control for the use 308 of a facility used by another carrier which is under such control, such bills for the lump-sum charge shall be rendered and paid dur- ing Federal control as heretofore; provided, however, if there be a change in such tenancy by the admittance of other tenants or other- wise, and the contractual basis upon which the lump-sum charge is made disturbed thereby, an arbitrary basis of charge by the owner against the tenant or tenants shall be determined as prescribed in paragraph (h) hereof. 4. Details heretofore required in support of joint facilities bills, statements, and accounts shall be discontinued, except that such bills shall show the totals chargeable and creditable to the primary operat- ing revenue, expense, tax, and rental accounts prescribed by the Inter- state Commerce Commission, or which may hereafter be prescribed. 5. If materials and supplies the value of which is carried in the accounts of one carrier under Federal control be used by another car- rier under such control for maintaining or operating equipment or facilities jointly used, the value at which such materials and supplies are carried in the accounts of the carrier furnishing them shall be billed against and paid for by the carrier using them as heretofore, except that percentages for overheads and other carrying expenses shall not be added to the cost thereof. W. G. :McAdoo. Director General of Bail roads. General Order Xo. 3-2. Washington, D. C. Jwu 29. 1918. Effective with the settlement of interline passenger accounts for the month of June, 1918, and thereafter, during the period of Fed- eral control, the following rules and regulations shall govern the apportionment of revenues from the sale of tickets, collection of ex- cess baggage revenues, and other analogous revenues, derived from interline passenger service. l)y one road under Federal control to other roads under such control : (1) Interline passenger revenue shall be apportioned to interested carrier under Federal control by the initial carrier on bases of mile- age applying via route over which the serA^ice is performed. (2) Each selling carrier shall determine monthly: {a) The total passengers carried 1 mile separately for each carrier over whose line tickets are sold. {h) The total revenue applicable to the total passengers carried 1 mile, as determined by {a). 309 {c) The average revenue per passenger per mile by dividing the total revenue (b) by the total passengers carried 1 mile {a) ; such average to be extended to four points beyond the decimal. (d) The revenue accruing to each carrier by multiplying the pas- sengers carried 1 mile for each carrier (a) by the average revenue per l^assenger per mile (c). (3) The revenues derived from the various classes of traffic, such a ; mileage and scrip exchange passage tickets, excess train fare tickets or coupons, etc.. vrhich are based upon rates other than three (3) cents per mile, shall be eliminated from the regular sales and apportioned separately on the passengers carried 1 mile basis. This should also be done in the case of special excursion, military, or other traffic inter- changed between tvro or more carriers where, if included, it would serve to distort the average revenue per passenger per mile that would obtain for otlier carriers interested in the distribution of the entire sales. (4) Excess baggage revenue shall be divided on the same general basis. (5) A carrier which, on and after June 10. 1918. may have a stand- ard rate of fare in excess of three (3) cents per mile shall be allowed, in the apportionment of revenue on interline tickets, a constructive mileage ; such constructive mileage shall be based on the ratio that the excess rate bears to the standard rate of three (3) cents per mile. Carrier should not claim constructive mileage when fares to be divided are not made a combination of the local fares based on the higher rat« per mile. Revenue derived from such traffic should be apportioned as provided in paragraph 3. (6) The selling carrier shall be held responsibile for the correct- ness of rates and the collection of the proper revenues derived there- from. (7) The initial or reporting carrier shall be held responsible for the prompt and proper reporting and distribution of interline reve- nues collected by it in the manner herein prescribed. Claims should be made for unreported tickets. Claims for substantial errors in ap- portionment, due to the use of erroneous mileage or erroneous aver- age revenue per passenger per mile, shall, if correct, be accepted and adjusted in reports for the subsequent month. Claims for arithmeti- cal errors, such as errors in calculation, addition, etc., which affect a single carrier's proportion to the extent of $5 in any one item, shall likewise be made, and if correct, adjusted: no adjustments shall be made for such errors under $5. (8) Land-grant revenues and revenues affected by land-gi'ant equalizations, shall, until otherwise ordered, be reported and ap- portioned separately on bases heretofore applicable. 310 (9) Arbitraries on account of water transfers, bridge tolls, om- nibus and baggage transfers and other similar arbitraries heretofore considered in the division of interline fares, shall be allowed to the carrier to which such arbitraries accrue. Proportions accruing to carriers not under Federal control, including boat and stage lines, etc., shall also be determined and allowed on regular bases heretofore in effect, and reported direct to such lines ; such arbitraries and pro- portions shall be deducted from the gross revenue and the remainder shall be used in establishing the average revenue per passenger per mile for apportionment of revenues to carriers under Federal control. (10) Interline passenger revenues shall be reported to interested carriers in such manner and on such forms as may be prescribed by the Director of Public Service and Accounting, in instructions to be issued by him, which instructions shall be complied with. For the present the standard association form of blanks may be used. (11) The methods herein prescribed for apportioning interline passenger revenues should be extended to carriers not under Federal control as far as practicable; therefore, should carriers not under such control desire to avail themselves of the simplified bases for ap- portioning interline passenger revenues, as herein prescribed, in conjunction with carriers under such control, arrangements may be made between such interested carriers for the extension of such methods. W. G. McAdoo, Director- General of Railroads. General Order No. 33. (Reprint of July 12, 1918.) Washixgtox, Jvihj 10, 1918. Mr. G. A. Tomlinson, General Manager of the New York Canal Section of the United States Railroad Administration, is appointed Federal Manager of New York and New Jersey Canals, effective July 15, 1918, and as such will perform the functions heretofore per- formed by him as General Manager of Now York Canal Section of th(> United States Railroad Administration, and in addition will operate for the Director General upon the Delaware & Raritan Canal and connecting waters such equipment as the United States Railroad Administration now has in its possession and control engaged in such operation and such additional cc(uipmont as may bo assigned for that purpose. Ho is authorized to enforce and collect such toll charges as are or may hereafter be established for the use of the Delaware & Raritan Canal by boats operated by others and empowered to enter 311 into contracts, oitlier in his own name as such Federal Manager or in the name of the Director General of Railroads, for the purchase of supplies needed in such operation and for the transportation of property ui)on such Canal and other waters. ^ ^ -^ W. G. McAdoo, Director General of Railroads. General Okder No. 34. [Ci'iu'i-al Order No. o-i is superseded l»y General Order No. 34-A.] Washington, Julij 10, 1918. Carriers subject to Federal control shall sell at public auction to the highest bidder, without advertisement, carload and less than car- load nonperishable freight that has been refused or is unclaimed by consignee and has been on hand for a period of sixty days. The consignee, as described in the waybilhng, shall be given due notice by mail of the proposed sale. Perishable freight shall be sold whenever in the judgment of the agent or other representative of the carrier it is necessary to do so, such reasonable effort being made to notify the consignee as de- scribed in the waybilhng as the circumstances wiU permit. The place of sale of both nonperishable and perishable freight shall be determined by the carrier. The net proceeds, if any, after deducting freight and other legitimate expenses, will be paid over t.) the owner on proof of ownership. W. G. McAdoo, Director General of Railroads. General Order Xo. o-l-A. Washington, D. C, Octoljcr i, 1918. General Order No. 34 is hereby revoked and General Order No. 34^A substituted in place thereof. Carriers subject to Federal control shall sell at public auction to the highest bidder, without advertisement, carload and less than car- load nonperishable freight which has been refused or is unclaimed at destination by consignees after the same has been on hand 60 days. Consignees, as described in the wavbilling, shall be notified of arrival of shipments in all cases, and such notice shall contain provisions that after freight is unclaimed or undelivered for 15 days after expiration of free time at destination it will be treated as refused and will be sold without further notice 60 days from date of notice of arrival. Consignors shall be notified when freight is refused or is unclaimed, as provided above, when the consignor can be determined from the 312 billing or when shipments are marked v^ith the consignor's name and address; such notice to contain proA'isions that unless proper orders for disposition are receiAed on or before a specified date, not earlier than GO days from date of arrival and notice to consijrnee, the sliip- ment will be sold for charges without further notice. Perishable freight may be sold in the discretion of the carrier ■whenever necessary to prevent waste, without notice except to con- signee. Such reasonable effort shall be made to notify the consignee as described in the waybilling as the circumstances will permit. Deposit in the mail of notices in accordance herewith shall be con- strued as sufficient notice to all concerned and a record shall be r.iade thereof by the employee who mails the same. The place of sale of both perishable and nonperishable freight shall be determined by the carrier; the net proceeds, if any. after deduct- ing freight and other legitimate expenses, will be paid to the owner on proof of interest. Nothing herein contained shall affect the provisions for notice to consignor of unclaimed or refused shipment of explosives or other dangerous articles, or for telegraphic notice to consignees of un- claimed and refused shipments at his expense and on his request, or other special provisions for notice to consignors, where such provi- sions are contained in the storage rules of the carrier, or other rules contained in tariffs on file with the Interstate Commerce Commission, except that where notice of refusal is given to the consignor under such tariff rules, it shall include the notice of sale after GO days aljove provided for, and notice need not be repeated under this order. W. G. JMcAdoo, Director General of Railroad fi. General Order No. 35. Washington, Jul]! 11, 191S. Effective this date, Mr. M. J. Sanders is hereby appointed Federal Manager of Mississippi and Warrior Waterways for the United States Railroad Administration, with headquarters at New Orleans, Louisiana, and, as such, will have charge of the construction and acquisition of equipment for use upon the Mississippi River between St. Louis and New Orleans, and for use upon the Warrior River between the Alabama coal fields and Mobile, and in connection there- with for use upon the Mississippi vSound and connecting waters between Mobile and New Orleans, and will operate such equipment for the Director General of Railroads upon all such waters. He is h(^reby empowered to enter into contracts, eitlier in his owTi name as such Federal Manager or in the name of the Director Gen- oral of Railroads, for the construction, acquisition, or chartering of 313 such equipment, for the purchase of supplies needed in such opera- tions, and for the transportation of traffic upon all such waters. W. G. McAdoo, Director General of Railroads. General Order No. 36. Washington, July 18, 1918. Premiums on fidelity bonds, wliich have heretofore been paid by or charged to officers, agents, and employees on transportation lines now, or which may hereafter be placed, under Federal control, sliall no longer be so handled, but shall be charged to operating expenses. W. G. McAdoo, Director General of Railroads. General Order No. 37. Washington, July 19, 1918. (1) The Local Treasurers appointed by Federal Managers or by General Managers appointed in lieu of Federal Managers, shall here- after be designated "Federal Treasurers" and are expected to devote themselves exclusively to the work of the United States Railroad Administration. They ought not to handle any funds for a railroad corporation or perform any other services therefor except in special cases after obtaining express authority. The Federal Treasurers should be nominated by the Federal Manager (or General Manager appointed in lieu of Federal Manager), and the nomination, when it shall have been approved by the Regional Director, should be trans- mitted to the Director of the Division of Fmance for consideration and final action. In cases where Federal Treasurers have already been appointed the appomtments should be submitted promptly through the Regional Director with his recommendations for con- firmation by the Director of the Division of Finance. (2) Immediately upon the appointment of Federal Treasurers the designation of the bank accoimt subject to check of such Fe^leral Treasurers shall be " (Name of Railroad), Federal Account." (3) (a) All cash representing receipts from the operations of its railroad since and including January 1, 1918, now in the hands of the railroad corporation for whose railroad a Federal Treasurer has been appointed, or held for account of the corporation, and \b) Any and aU other cash now in the hands of such railroad corporation or held for its account for use in connection 'with the operation or im.provement of its railroad 314 shall he at once transferred by the railroad corporation to accounts in the same banks in which it is now held, designated as prescribed in paragraph (2) hereof, which shall be subject to check by the Fed- eral Treasurer. (4) Federal Treasurers shall draw on the new accounts thus to be opened and subject to their check only for (a) the payment of materials and supplies purchased since December 31, 1917. (h) the payment of operating expenses and taxes (other than the war income tax and the excess profits tax) accrued since December 31, 1917, and (c) the payment of such addition and betterment costs as may be approved by the Federal Manager (or General Manager appointed in lieu of the Federal Manager). Federal Treasurers shall not draw on such accounts for an}- other purposes except when expressly authorized to do so by the Director of the Division of Finance and Purchases. (5) A specimen form of check which has been approved for use by all railroads under Government control is attached hereto. In or- dering checks for the use of the railroad the Federal Treasurer will follow as closely as practicable the general arrangement and language of the specimen form. The account with every bank must be stated in the name of the railroad with the name ''Federal Accomit" im- mediately following on the same line as shown m the attached specimen. (6) Until further ordered checks signed by the Treasurer should be countersigned according to the practice now in vogue on the dif- ferent roads where regulations now call for such countersignatures. W. G. McAdoo, Director General of Railroads. o 55 tFonn of check attached to and made a part of General Order No. 37.] MwM ^tateHailrnali Atimiiiiaimtiun . W. G. MC Ado O, Director Gkneral . ^A^'TO OR ORDER. $ TO -DOLAAKS. .,„^ ^, „ 1 ^^oRrfffS-SormR.R. Federal AccocrjVT. IJBERTV National bank,1^^'^7->ws"'^'S^o Wash i ngton. l) . G . | r^^,^^ 77?&.^c/ai^: • 315 General Order No. 37-A. Washington, August 1, 1918. General Order No. 37 of July 19, 1918, is hereby revised to read as follows — (the words underscored indicating the additions to the Order as originally issued) : (1) The Local Treasurers appointed by Federal Managers, or by General Managers appointed in lieu of Federal Managers, shall here- after be designated "Federal Treasurers" and are expected to devote themselves exclusively to the work of the United States Railroad Administration. They ought not to handle any funds for a railroad corporation or perform any other services therefor except in special cases after obtaining express authority. The Federal Treasurers should be nominated by the Federal Man- ager (or General Manager appointed in lieu of Federal Manager), and the nomination, when it shall have been approved by the Regional Director, should be transmitted to the Director of the Division of Finance for consideration and final action. In cases where Federal Treasurers have already been appointed the appointments should be submitted promptly through the Regional Director with his recom- mendations for confirmation by the Director of the Division of Finance. (2) Immediately upon the appointment of Federal Treasurers the designation of the bank account subject to check of such Federal Treasurers shall be " (Name of Railroad), Federal Account." (3) (a) All cash representing receipts from the operations of its railroad since and including January 1, 1918, now in the hands of the railroad corporation for whose rail- road a Federal Treasurer has been appointed, or held for account of the corporation ;' and (h) Any and all other cash now in the hands of such railroad corporation or held for its account for use in connec- tion with the operation or improvement of its railroad shall be at once transferred by the raihoad corporation to accounts in the same banks in which it is now held, designated as prescribed in paragraph (2) hereof, which shall be subject to check by the Federal Treasurer. (4) Federal Treasurers shall draw on the new accounts thus to be opened and subject to their check only for (a) The payment of materials and supplies purchased since December 31, 1917; and also of materials and supplies purchased prior to December 31, 1917, 316 (&) the payment of operating expenses (including approved claims for personal injuries and loss and damage), and also e quipment and joint facility rents, traffic bal- ances, overcharges and taxes (other than the war in- come tax and the excess-profits tax) accrued smce December 31, 1917; and also all items clearly appli- cable to the period prior to January 1, 1918, com- monly called "lap-overs," w hich are required to be set up on the Federal books p ursuant to Order No. 17. (c) the payment of siich addition and betterment costs as may be approved by the Federal Manager (or General Manager appointed in lieu of the Federal Manager). Federal Treasurers shall not draw on such accounts for any other purposes except when expressly authorized to do so by the Director of the Division of Finance and Purchases. (5) A specimen form of check which has been approved for use by all railroads under Government control is attached hereto. In order- ing checks for the use of the railroad the Federal Treasurer will follow as closely as practicable the general arrangement and language of the specimen form. The account with every bank must be stated in the name of the railroad with the name "Federal Account" immediately following on the same line as shown in the attached specimen. (6) Until further ordered checks signed by the Treasurer should be countersigned according to the practice now in vogue on the different roads where regulations now call for such countersignatures, W. G. McAdoo, Director General of Railroads. [Slip attached to and forming a part of General Order No. 37-A.] The specimen check which accompanied Order No. 37 should gov- ern, except that the heading thereof should be changed to read: "UNITED STATES RAILROAD ADMINISTRATION "W. G. McAdoo, Director General of Railroads." Generat> Order No. 38. Washington, D. C, July 24, WIS. Pursuant to the Act approved March 21, 1918, entitled "An Act to provide for the operation of transportation systems while under Federal Control, for the just compensation of their owners, and for other purposes," it is ordered that on and after the 15th day of 317 August, 1918, tlie following requirements and provisions shall apply and be observed in respect to the shipments hereinafter described: 1. Shipments intended for use of any one of the Government Departments, either directly or through a contractor with the United States Government, shall not be entitled to or receive any privilege which may be accorded on account of being intended for use of one of the United States Govern- ment Departments, either directl}^ or indirectly through a contractor with the United States Government, where said shipments are consigned otherwise than in one of the fol- lowing ways: (a) To a Government officer designated, not by the name of the individual, but by the title of his position; as, for example: Supply Officer, Naval Inspector, or Constructing Quartermaster. (b) To a Government officer designated not by name but by title as above, followed by the words "For account of," and then followed by the name of the contractor or agent for the Government engaged on the work at the point of destmation. (c) On some contracts the Government has entered into an agreement designating certain parties as agent, or agents, for the Government on that particular con- tract. Shipments for such parties shall be consigned to the particular Department for which the work is being done, followed by the words "For account of," and then followed by the name of the agent, as, for instance: Ordnance Department: For account of duPont Engineering Co. Agent, Penniman, Williams- burg, Va. or Oi-dnance Department: For account of T. A. Gil- lespie, Loading Co., Agents. South Amboy, N.J. id) Shipments of material, equ;ipmeut and supplies for any person repahing or building ships under the supervi- sion of the United States Shipping Board Emergency Fleet Corporation, shall be consigned only to the United vStates Shipping Board Emergency Fleet Cor- poration, followed by the words "For account of" and then followed by the name and location of the particular concern performing the work, as, for in- stance : United States Shipping Board Emergency Fleet Corporation: For account of American Interna- tional Shipbuilding Corporation, Hog Island, Pa. 318 2. It is forbidden — (a) In consigning a shipment to use the words, "United States Government" or substantially that term, or abbreviations thereof, as the sole description of the consignee ; (&) Or to consign a shipment to and in the name of the United States Government followed by words indi- cating that it is sent "care of" a private person, firm, or corporation; (c) Or to consign a shipment to a Government official or to an officer of the Army or Navy by his name as an individual ; (d) Or to consign a shipment to a Government official or to an officer of the Army or Navy followed by words indicating that it is sent "care of " a private person, firm, or corporation. 3. No shipper or other person seeking or obtaining any privilege which may be accorded on account of the shipment being intended for the use of any one of the United States Gov- ernment Departments, either directly or indirectly through a contractor with the United States Government, shall without authority use or cause to be used as consignee the name or title of the United States or of any depart- ment, bureau, agency, employee, or officer thereof, or of the United States Shipping Board Emergency Fleet Cor- poration or of any officer, agent, employee thereof, or of any other person, or the designation "Emergency Fleet Corporation" ; nor shall any shipper or other person offer or cause to be received for carriage, or transported, without authority, any such shipment consigned as specified in the foregoing paragraphs number 1 and 2, for the purpose of securing, by such consignment, any privilege which may be accorded on account of the. shipment being in- tended for the use of any one of the United States Gov- ernment Departments, either directly or indirectly through a contractor with the United States Government. 4. Agents are forbidden to sign or issue bills of lading or receipts for shipments which in any manner conflict with any of the foregoing provisions. W. G. McAdoo, Director General of Railroads. (Violation of the foregoing order is punishable by fine of not more than $5,000.00 or by imprisonment for not more than two years or by both such fine and imprisonment.) 319 General Order No. 39. Washington, August 12, 1918. The sale of liquors and intoxicants of every character in dining cars, restaurants and railroad stations under Federal control shall be discontinued immediately, W. G. McAdoo, Director General of Railroads. General Order No. 40. Washington, D. C, August 18, 1918. To all employees in the railroad service of tTie United States: Complaints have reached me from time to time that employees are not treating the public with as much consideration and courtesy under Government control of the railroads as under private control. I do not know how much courtesy was accorded the public under private control, and I have no basis, therefore, for accurate comparison. I hope, however, that the reports of discourtesy under Government ad- ministration of the railroads are incorrect, or that they are at least confined to a relatively few cases. Whatever may be the merits of these complaints, they draw attention to a question which is of the utmost importance in the management of the railroads. For many years it was popularly believed that "the public be damned" policy was the policy of the railroads under private control. Such a policy is indefensible either under private control or Govern- ment control. It would be particularly indefensible under public control when railroad employees are the direct servants of the public. "The public be damned" policy will in no circumstances be tolerated on the railroads under Government control. Every employee of the railroad should take pride in serving the public courteously and effi- ciently. Courtesy costs nothing and when it is dispensed, it makes friends of the public and adds to the self-respect of the employee. My attention has also been called to the fact that employees have sometimes offered as an excuse for then ovra shortcomings, or as a justification for delayed trains or other difficulties the statement that "Uncle Sam is running the railroads now" or "These are McAdoo's orders," etc. Nothing could be more reprehensible than statements of tliis character, and nothing could be more hurtful to the success of the Railroad Administration or to the welfare of railroad employees themselves. No doubt, those who have made them have done so thoughtlessly in most instances, but the harm is just as great if a thing of this sort is done thoughtlessly as if it is done deliberately. There are man}- people who for partisan or selfish purposes wish Government operation of the railroads to be a failure. Every em- 320 2)loyee who is discourteous to the public or makes excuses or state- ments of the kind I have described is helping these partisan or selfish interests to discredit Government control of railroads. Recently the wages of railroad employees were largely increased, involving an addition to railroad operating expenses of more than $475,000,000 per annum. In order to meet this increase, the public has been called upon to pay largely increased passenger and freight rates. The people have accepted this new burden cheerfully and patriotically. The least that every employee can do in return is to serve the public courteously, faithfully and efficiently. A great responsibility and duty rest upon the railroad employees of the United States. Upon then* loyalty, efficiency and patriotism depends in large part America's success and the overthrow of the Kaiser and all that he represents. Let us not fail to measure up to our duty and to the just demand of the public that railroad service shall not only be efficient, but that it shall always be courteously administered. W. G. McAdoo, Director General of Railroads. General Order No. 41. - Washington, August 28, 1918. REGULATIONS GOVERNING DISPOSITION OF INTER-ROAD FREIGHT CLAIMS FOR LOSS AND DAMAGE. The following regulations will govern carriers under Federal con- trol in investigating, paying, and accounting for freight claims for loss and damage arising during Federal control. They will not affect the distribution of settlements involving any road not under Federal control nor the distribution of claims clearly applicable to the period prior to Federal control. 1. Presentation of claims. — Effective September 1st, 1918, claims for loss of or damage to freight shall, except as modi- fied in this paragraph, be presented to and settled by the destination or initial carrier. Claims filed with an inter- mediate carrier, through error, shall be immediately trans- mitted to the destination carrier and claimant so advised. An intermediate carrier clearly at fault may invito and adjust claims direct. Claims for fire or marine losses shall be referred for adjustment to the carrier responsible, and claimant so advised. 2. Papers necessary to support claims. — Claims for loss of or damage to freight shall be made on the standard forms ap- proved by the Interstate Commerce Commission. In the 321 case of loss or damage, they shall be supported by original bill of lading, if not previously surrendered to carrier, original paid freight re(eii)t, if issued, original or certified copy of invoice of value and all obtainable facts in proof of such loss or damage and the value thereof. If any necessary document is lost or destroyed, claimant shall file a bond of indenmity to cover. 3. Method of adjustment. — The foregoing provisions liaving been complied with, loss and damage claims shall be adjusted with the claimant in accordance with the established legal hability, bill of lading, tariff provisions, and Federal regula- tions, by the carrier to which presented for the account of and without reference to the other carriers interested in the haul, before the completion of other investigations necessary for the purpose of locating responsibihty or apportioning the amount paid. 4. Car-seal records. — Investigation for development of car-seal records in connection with the apportionment of claims between earners shaU be discontinued. 5. Loss or damage definitely located. — Claims for loss or damage definitely located, the legal Hability for which has been es- tabhshed and payment made, shall be charged direct to carrier or carriers responsible therefor. 6. Loss or damage unlocated. — Claims for unlocated loss or damage, thb legal liabihty for which has been estabhshed and payment made, shall be apportioned to interested carriers on mileage basis, with minimum of ten miles for any carrier. 7. Claims involving litigation. — Law expenses, including court costs, incurred in connection with the defense of an action where recovery is had, shall be apportioned among the carriers involved on the same basis as the claim. In the event there is no recovery, the law expenses shall be appor- tioned between the carriers interested on a mileage basis, minimum ten miles for any carrier, and subject to Para- graph 8, Minimum Debits. 8. Minimum debits. — Except as provided in Paragraph 5 hereof, the entire amount of any individual loss and damage claim shall be absorbed by the setthng carrier, unless the amount chargeable against all other carriers under Federal control in interest exceeds five doUars ($5.00). Proportions less than one dollar ($1.00) against any one carrier shall, however, be absorbed by the setthng carrier. 105889°— 19 21 322 9. Settlement hetween carriers. — On or before the tenth day of each month, paymg carrier shall render a statement of amount due from each debtor carrier showing thereon the claim number, points between which shipment moved over debtor line, waybill reference and date, commodity, nature of claim, and amount. The total amount of such statement shall be accepted by debtor carrier as final, except if it be found that an amount was included in statement in error, or a manifest clerical error, adjustment shall be made therefor in the subsequent statement, as prescribed in General Order No. 30. Manifest errors in claim payments should be brought to the attention of the debiting carrier. 10. Monthly statements. — Separate monthly statements shall be rendered for liabilities which were incurred prior to January 1st, 1918, and for liabilities which were incurred subsequent to December 31st, 1917. In no case shall a single statement include both prior and subsequent liabilities. Such state- ments rendered against debit carriers should be forwarded through the proper accounting officer of the carrier by whom they are prepared. 11. Method of imyment. — Loss and damage freight claims shall be audited and paid on regularly audited vouchers in same manner as other operating expenses are vouchered. Such vouchers shall be approved for audit by the Freight Claim Agent, and for payment by or under the direction of the officer designated to approve vouchers for payment. Pro- vided, however, loss and damage freight claims may be paid by drafts drawn upon the Federal or Local Federal Treas- urer having jurisdiction within the same limitations v/hich are now in effect and authorized by the officer in charge of such authorization. 12. Custody of claim jmpers. — Claim papers shall remain in posses- sion of paymg carrier, except that where individual claims are charged in full to another carrier, the papers may be sent to such carrier upon request. When documents supporting either paid or unpaid claims leave possession of carrier, they shall be plainly stamped with carrier's name and claim number. 13. Notations of exceptions on waybills. — Loss or damage discovered at any point in transit shall be specifically noted on face of waybill, dated and signed in name of Agent, Conductor, or other authorized employee, giving name of carrier respon- sible, or point where discovered if responsibility is located. 14. Noting exceptions on paid freight receipts. — Agents deUvering freight to consignee, when shortage or damage is known to 323 exist, shall make specific notation of extent and nature of the loss or damage on face of original paid freight bill and sign and date such notation in mk. When freight bears external evidence of pilfery or damage at tmie of delivery, a joint inspection with consignee or his representative shall, when practicable, be made at the delivery station and receipt taken in accordance therewith. Claim for value of freight check- ing short at destination shall not be paid until inquuy has been made of delivering agent and consignee to ascertain if shortage has since arrived or reached consignee through any source. 15. Delivery of astray freight. — Astray freight (freight marked with name and address of consignee, but separated from regular revenue waybill) shall be immediately forwarded to marked destination on standard form of waybill, without charges (copy by mail to destination agent) , and such waybill shall bear the notation "Astray Freight — DeUver only on pres- entation of original bill of lading or original paid freight receipt or other proof of ownership." Destination agent receiving astray freight shall immediately notify consignee to whom marked, and if regular revenue waybill is not re- ceived, delivery shall be made on presentation of proof of ownership prescribed and collection of tariff charges from point where shipment originated. Special efforts should be made to establish the ownership of perishable freight, in order to insure prompt dehvery. 16. Freight Claim Association Rules. — Rules prescribed by the Freight Claim Association, except such as conflict with the regulations herein provided, shall govern all carriers under Federal control until otherwise ordered. W. G. McAdoo, Director General of Railroads. General Order No. 42. [General Order No. 42 aud Supplement No. 1 thereto are superseded by General Order No. 48.] Washington, August 31, 1918. To all officers and employees in the railroad service of the United States : The approaching Federal and State elections, including the primary contests connected therewith, make it both timely and necessary that the attitude of the Director General toward political activity on the part of officers and employees in the railroad service should be clearly stated. 324 It was a matter of common report that railroads under private control were frequently used for partisan political purposes: that railroad corporations were frequently adjuncts of political machines, and that even sovereign States had been at times dominated by them. Contributions to campaign funds and the skiDful and effective coercion of employees were some of the means by which it was believed that many railroads exerted their power and influence in politics. Scandals resulted from such practices, the public interest was prejudiced, and hostility to railroad managements was engendered. Now that the Govermnent controls and operates the railroads, there is no selfish or private interest to serve, and the incentive to political activity on the part of the railroads no longer exists. Under Government control there is no inducement to officers and employees to engage in politics. On the contrary, they owe a high duty to the public scrupulously to abstain therefrom. It is therefore announced as a definite policy of the United States Railroad Administration that no officer, attorney, or employee shall — 1. Hold a position as a member or officer of any political committee or organization that solicits funds for political purposes. 2. Be a delegate to or chairman or officer of any political convention. 3. Solicit or receive funds for any political purpose or contribute to any political fund collected by an official or employee of an}^ railroad or anj^ official or employee of the United States or of any State. 4. Assume the conduct of any political campaign. 5. Attempt to coerce or intimidate another officer or employee in the exercise of his right of suffrage. Violation of this will result in immediate dismissal from the service. 6. Become a candidate for any political office. Membership on a local school or park board will not be construed as a political office. Those desiring to run for poHtical office or to manage a political campaign must immediately sever their connection with the United States Railroad Service. I am sure that I can count on the loyal cooperation of all officei-s, attorneys, and employees engaged in the operation of the railroads under Federal control to carr}- out in letter and spirit the policy here. announced. This policy is intended to secure to all of them freedom of action in the exercise of their individual political rights, and, at the same time, to prevent any form of lun-tful or pernicious political activity. Let us demonstrate to the American people that, under Federal control, railroad officers, attorneys, and employees can not be made 325 a part of any political machine nor be used for any organized partisan or selfish purpose. Let us set such a high standard of public duty and ser^^ce that it will be worthy of general emulation. W. G. McAdoo, Director General of Railroads. Supplement No. 1 to General Order !N"o. 42. Washington, D. C., Septemler 14, 1918. (1) It appears that prior to the issuance of General Order No. 42 various railroad officers, attorneys, and employees were elected to poUtical offices and are now holding such offices. In such cases no objection will be raised to the completion of such terms of office. In all other respects, however, General Order No. 42 will apply to such oificei's, attorneys, and employees. (2) In cases where prior to the issuance of General Order No. 42 railroad officers, attorneys, and employees had been nominated for pofitical offices or had become candidates locally for such oflfices, they may continue in railroad employment until the election. (3) The position of notaries public, members of draft boards, officers of public libraries, and of religious and eleemosynary insti- tutions are not construed as pofitical offices. W. G. McAdoo, Director General of Railroads. General Order No. 43. Washixgtox, Septemher o, 191S. Whereas proceedings in garnishment, attachment, or like process by which it is sought to subject or attach money or property under Federal control or derived from the operation of carriers imder Fed- eral control imder the act of Congress of March 21, 1918, are incon- sistent with said act and with the economical and efficient adminis- tration of Federal control thereunder ; and Whereas such proceedings are frequently commenced, particularly for the garnishment or attachment of amounts payable, or claimed to be payable, as wages or salaries of employees, which practice is prejudicial to the interests of the Railroad Administration in the operation of the lines and systems of transportation under Federal control, and is not necessary for the protection of the rights or the just interests of employees or others; and Whereas if any rules or regulations l^ecome necessary to require employees to provide for their just debts, the same will be issued hereafter : 326 It is therefore ordered that no moneys or other property under Federal control or derived from the operation of carriers while under Federal control shall be subject to garnishment, attachment, or like process in the hands of such carriers or any of them, or in the hands of any employee or officer of the United States Railroad Administration. W. G. McAdoo, Direct'or General of Railroads. General Order No. 44. Washington, September 24, 1918. The chief accounting officer in general charge of one or more accomiting organizations of the Director General shall be designated ' ' Federal Auditor. ' ' The chief accounting officer in charge of an accounting organization under the Federal Auditor shall be desig- nated "Auditor." Federal Auditors and Auditors ought not to perform any services for a railroad corporation, except in special cases after obtaining express authoritv. W. G. McAdoo, Director General of Railroads. General Order Xo. 45. Washington, October 5, 1918. On the recommendation of the Committee on Transportation of the American Railway Association the following instructions, in con- nection with changing the hands of the clocks and watches on Sun- day, October 27, 1918, at 2 a. m., as provided in the Federal law "To Save Daylight and to Provide Standard Time for the United States," are hereby issued : First: At 2 a. m., present Standard Time, Sunday, October 27, 1918, all clocks and watches in train dispatchers' offices, and in all other offices open at that time, must be turned back one hour, to indicate 1 a. m. Employees in every open office must, as soon as the change has been made, compare time with the train dispatcher. Clocks and watches in all offices at the first opening, at or after the time the change becomes effective, must be turned back to conform to the new Standard Time, and employees, before assuming duties in such offices, must, after the change is made, compare time with the train dispatcher. Second: Each railroad will issue necessary instructions and arrange for such supervision and check of the watches of its employees as 327 to insure that they have been properly changed to conform to the new Standard Time. Third : Kegiilar trains must be held to conform to schedules after change in time. Fourth: Owing to the varying conditions which will prevail on the railroads of the United States, it is not advisable to issue a uni- form rule or order to cover other details involved in the movement of trains at the period the change in Standard Time becomes effec- tive. Therefore, each railroad must adopt such measures as may be necessary to properly safeguard the movement of its trains on the road at the time of the change. W. G. McAdoo, Director General of Railroads. General Order No. 46. Washington, Octoher -5, 1918. The records of the Interstate Commerce Commission and the re- ports of their inspectors show so many instances of violation of Federal statutes for the promotion of safety that it is evident that sufficient attention is not being paid to paragraph 1 of General Order No. 8, of February 21, 1918, reading as follows : '•All acts of Congress to promote the safety of employees and travelers upon the railroads, including acts requiring investigation of accidents on railroads, and orders of the Interstate Commerce Commission made in accordance therewith, must be fully complied with. These acts and orders refer to hours of service, safety appli- ances, and inspection." Enforcement of the provisions of this paragraph will be placed under the direction of Assistant Director of the Division of Opera- tion, Frank McManamy, who will receive reports of such violations and handle them either with the Regional Directors or direct, if found necessary. All necessary investigations in connection therewith will be con- ducted by the Assistant Director of Operation and reports of such violations will be sent to Regional Directors for correction and not for further investigation. W. G. McAdoo, Director General of Railroads. General Order No. 47. Washington, Octoher 5, 1918. repairs to equipment. The following regulations shall govern the determination of costs and the compilation and rendition of bills bj'^ one carrier under Fed- 328 eral control against another carrier under such control for repairs to equipment actually made on and after October 1, 1918. Bills for repairs actually made prior to that date shall be compiled and rendered and the costs for such repairs shall be determined as here- tofore. REPAIRS TO CARS. (1) The cost to repair freight and passenger train cars and work equipment shall be borne and included in the operating expenses of the carrier which, under the rules and practices, applicable at the time repairs are made, may be responsible for such repairs. (2) Tlie cost of repairs made by any carrier to its own cars or to cars of another carrier for which it the repairing carrier is respon- sible shall be based upon actual applied material and labor costs plus a proper proportion of '• shop expenses," as prescribed by the rules of the Interstate Commerce Commission or which may hereafter be prescribed. (3) If the cost of repairs made to cars by one carrier be chargeable to another carrier such costs shall be based on the rules prescribed by the Master Car Builders' Association which were applicable at the time such repairs were made. Details in support of such repair costs shall be prepared as heretofore. (4) There shall be compiled monthly, from the detail record re- ferred to in the preceding paragi-aph, one statement against each carrier under Federal control for the repair costs chargeable to it. Such monthly statements sliall be made in duplicate and shall show separately for freight train cars, passenger train cars, and work equipment : (a) Total cars repaired. (&) Total labor costs including shop expense costs. (c) Total material costs including handling and other costs charge- able to material. (d) Added per cent. (e) Total costs. (5) The originals of such statements shall be rendered to and ac- cepted by debtor carriers as rendered, in accordance with the provi- sions of General Order No. 20. (6) The duplicates of such statements shall be attached to the detail data from which they are made and retained by the carrier making the repairs. REPAIRS TO L0C0:M0TIVES. (7) The provisions of paragTaphs (1) and (2) of this order with respect to repairs of cars shall in like manner apply to repairs of locomotives. 329 (8) The costs for repairing locomotives of one carrier under Fed- eral control or for account of another carrier under such control shall be determined in the following manner: («.) To the cost of all applied material there shall be atlded fifteen (15) per cent to cover cost of handling. (b) To the cost of all applied labor there shall l)e added ten (10) per cent to cover accounting and other incidental costs. {c) Proportion of shop expense costs. {d) The aggregate of all such costs shall re])resent tlie amount to he charged for the repairs. (9) Details comprising such repair costs shall be compiled and kept by the repairing earner, from which monthly statements in duplicate shall be prepared against the carrier responsible for such costs. Such statements shall show the repair costs for each indi- vidual locomotive stated in the following detail : {a) Total labor costs. (b) Total material costs. (c) Shop costs. {d) Added per cent for Jabor. (e) Added per cent for material. (/) Total cost. (10) The originals of such statements shall be rendered to and accepted by debtor carriers as rendered, in accordance with the pro- visions of General Order No. 20. Duplicates shall ])e attached to the detail data from which they are made and retained by the carrier making the repairs. ADDITIONS AND BETTERMENTS COSTS. (11) If additions and betterments be made by one carrier under Federal control to the equipment of another carrier under such con- trol, the owning carrier shall be billed by the carrier making the improvements for the costs thereof. Such bill shall show the kind and class of equipment, the initial and number thereof, as well as such details as to specifications and costs as may be necessary to enable the owning carrier to make proper record of the improvement. Bills for such costs shall be subject to check and verification by the oAvning carrier. Bills for additions and betterments costs shall not be included with bills for repair costs. (12) If, in repairing a unit of equipment, a change in the standard established by the owner be made such as substitution of parts, advice of such change shall be given the owner. EQUIPMENT DESTROYED. (13) If a unit of equipment of one carrier under Federal control be destroyed on the line of another carrier under such control, advice 330 of such destruction shall be promptly given to the owning carrier by the carrier on whose line the unit was destroyed. Upon receipt of such advice the owning carrier shall bill the destroying carrier there- for, in accordance with Master Car Builders' Association rules as now in effect, or as may hereafter be prescribed. MATERIALS FURNISHED BY ONE CARRIER TO ANOTHER. (14) Material furnished by one carrier under Federal control to another carrier under such control for use in repairing or improving the equipment of the owning carrier shall be billed by the carrier furnishing it and paid for by the repairing carrier at costs at which the material is carried in the accounts of the owning carrier plus actual out-of-pocket handling or shipping costs. Such material shall be taken into the accounts of the carrier to which it is furnished at such billed costs, to which shall be added freight and other han- dling costs actually incurred by the receiving carrier. The costs thus determined shall be used as a basis for determining the cost of ma- terial used in such repairs or improvements. (15) Bills for material furnished as prescribed in the preceding paragraph shall be made in detail. They shall be subject to check and reclamation or rejection by the debtor carrier in respect to damage or shortage. (16) Bills for repairs to equipment for which private owners or carriers not under Federal control (including Canadian and Mexican railroads) are responsible shall, unless and until otherwise ordered, be made and rendered as heretofore in accordance with Master Car Builders' rules applicable at the time such repairs are made. (17) Bills for repairs to equipment made by carriers not under Federal control against carriers under such control shall be tested, verified, and paid by the carrier responsible for such repairs as heretofore. (18) The provisions of this order in respect to the rendition of monthly statements shall take effect on October 1, 1918, and shall apply only to repairs actually made on and after that date. Bills for repairs made prior to that date shall be rendered as heretofore. W. G. MoAdoo, Director General of Railroads. General Order No. -18. Wa.shington. Octoher ^2, 1918. This Order is issued in lieu of and as a substitute for General Ordei- No. 42 and Supplement No. 1 thereto. 331 The issuance of General Order No. 42 was for the purpose of ex- tending to officers, attorneys and emplo3^ees in the Railroad Service of the United States substantially the same regulations as to politi- cal activity vrhich have been applied for many years through Ci\ il Service Laws and Executive and Departmental Orders and Regula- tions to other employees of the United States. These laws, orders and regulations conform to a wise policy which has long had the support of the people of the United States regardless of political parties. Since the Government has taken control of the railroads and their former officers, attorneys and employees have become public servants, it is necessary that the same policy as to political activit}^ be extended to them as to other employees of the United States. As employees of the Government, they cannot be properly exempted from the policy applied to other Government employees. It has developed, however, since General Order No. 42 was issued, that there are many communities in the United States which are ^'omposed largely, and in some respects almost wholly, of railroad employees and their families, and that the proper civil administra- tion of such communities makes its necessary that railroad employees should hold municipal offices. It is clear that in such cases excep- tions should be made. Such exceptions have been made by the Gov- ernment in other cases (such as Navy Yards in certain localities) where the population consisted wholly or in large part of Gov- ernment employees and where it was necessary for proper adminis- tration of civil affairs such Government employees should hold local political offices. It has, therefore, been determined to permit railroad employees to hold municipal offices in the communities in which they live, provided they do not neglect their railroad duties as a result thereof, and also to limit Section (2) to a prohibition against railroad employees act- ing as chairmen of political conventions or using their positions in the Railroad Service of the United States to bring about their selec- tion as delegates to political conventions, in order to harmonize said Section (2) with existing Civil Service Rules and Departmental Regulations. It is. therefore, ordered that no officer, attorney or employee shall — 1. Hold a position as a member or officer of any political com- mittee or organization that solicits funds for political pur- poses. 2. Act as chairman of a political convention or use his position in the Railroad Service of the United States to bring about his selection as a delegate to political conventions. 3. Solicit or receive funds for any political purpose or contribute to any political fund collected by an official or employee of 332 any railroad or an}' official or emploj^ee of the United States or any State. 4, Assume the conduct of any political campaign. 5. Attempt to coerce or intimidate another officer or employee in the exercise of his right of suffrage. Violation of this will result in immediate dismissal from the service. G. Neglect his railroad duties to engage in politics or use his position in the Railroad Service of the United States to interfere with an election. An employee has the right to vote as he pleases, and to exercise his civil rights free from interference or dictation by any fellow employee or by any superior or by any other person. Railroad employees may become candidates for and accept election to municipal offices W'here such action will not involve neglect on their part of their railroad duties, but candidacy for a nomina- tion or for election to other political office or the holding of such office is not permissible. The positions of notaries public, members of draft boards, officers of public libraries, members of school or park boards, and officers of religious and eleemosynary institutions are not constructed as political offices. 7. In all cases where railroad officers, attorneys and employees were elected to political offices prior to the issuance of General Order No. 42, August 31, 1918. they will be per- mitted to complete their terms of office so long as it does not interfere with the performance of their railroad duties. After the completion of said terms of office, they will be governed by the provisions of this Order. 8. In all cases where railroad officers, attorneys and employees Avere nominated for political offices and had become candi- dates therefor prior to the issuance of General Order No. 42, August 31, 1918, they will be permitted to hold and com- plete the terms of office to whicli they may be elected at the general election to be held November, 1918, to the extent that the holding of such offices shall not interfere with the perfoi-mance of their railroad duties. After the completion of such tei-ms of office, they shall be governed by the pro- visions of this Order. Railroad men have given ample proof of their loyalty to their Goveniment. I am confident that they will gladly and patriotically acc(>pt now those reasonable Govemmental Regulations concerning jjolitical activity which their welfare and America's cause demand. Thev are the same regulations in their general scope and application 333 as all other Government employees have lived under for many years without the loss of any essential rights and with added dignity to their citizenship. W. G. McAdoo, Director General of Railroads. Approved : AVooDROW Wilson. General. Order Xo. 40. Washington, Octoher 23, 1918. There are presented herewith and made a part of this General Order, samples of standard forms of monthly ticket and excess baggage reports, upon which all accounting transactions with re- spect to the sale of passage and excess baggage tickets, shall be re- ported by agents to the Accounting officers having jurisdiction, also a form for reporting Transportation Requests exchanged for tickets. All tickets sold, or exchanged, on and after November 1, 1918, shall be reported on the appropriate forms in such manner as may be directed by the Director of Public Service and Accounting. The standard forms herein prescribed are reports of : — Local Ticket Sales Interline Ticket Sales Local Excess Baggage Collections Interline Excess Baggage Collections Transportation Requests exchanged for tickets. For use at smaller stations, half size report forms for Interline Ticket Sales, and Interline Excess Baggage Collections may be used. The printing and ruling on the report foniis shall be a- facsimile of the samples herewith presented ; provided, however, the name of the individual carrier shall be substituted for the designation " North and South Railroad " as shown on the sample forms. When advan- tageous to do so, the name of the carrier may be omitted. Provided further that each carrier may print destinations, rates, and other similar data calculated to aid in compilation and accounting. With the inauguration of these standard forms of monthly reports, all other reports of such transactions shall be discontinued, provided that special periodical reports of tickets furnished Governmental Departments, or other reports of a special nature necessary for ac- counting purposes, may be compiled and furnished. The monthly reports herein prescribed shall be made in duplicate, either by carbon or press copy process ; originals shall be forwarded to the proper accounting officer having jurisdiction ; duplicates shall be retained by agents. 334 Distinctive colors shall be used for the two classes of reports; that is, forms for reporting local ticket sales and local excess baggage collections shall be printed on paper of light canary color, and forms for reporting interline ticket sales and interline excess baggage col- lections shall be printed on white paper, provided, however, that the color scheme may be disregarded in connection with the dupli- cate forms to be retained by agents. These reports shall be introduced at the Consolidated Ticket Offices on date named, and at all other agencies as soon as stock of forms at present in use becomes exhausted, but in any event not later than January 1, 1919, W. G. McAdoo, Director General of Railroads. General Order No. 50. Washixgtox, October 2S, 1918. Whereas by the Proclamations dated December 26, 1917, and April 11, 1918, the President took possession and assumed control of systems of transportation and the appurtenances thereof, and appointed the undersigned, William G. McAdoo, Director General of Kailroads, and provided in and by said Proclamations that " until and except so far as said Director shall from time to time otherwise by general or special orders determine, such systems of transporta- tion shall remain subject to all existing statutes and orders of the Interstate Commerce Commission and to all statutes * * * but any orders, general or special, hereafter made by said Director shall have paramount authority and be obeyed as such" ; and Whereas the Act of Congress, called the Federal Control Act, approved March 21, 1918, provided that " carriers while under Fed- eral control shall be subject to all laws and liabilities as common carriers, whether arising under State or Federal laws or at common law, except in so far as may be inconsistent with the provisions of this Act or any other Act applicable to such Federal control, or with any order of the President"; and Whereas since the Director General assumed control of said sys- tems of transportation, suits are being brought and judgments and decrees rendered against carrier corporations on matters based on causes of action arising during Federal control for which the said carrier corporations are not responsible, and it is right and proper that the actions, suits and proceedings hereinafter referred to, based on causes of action arising during or out of Federal control should be brought directly against the said Director General of Kailroads and not against said corporations : Form No (To be Inserted br Individual Carrier) REPORT OF LOCAL TICKET SALEI At Sheet No of — Sheets NORTH AND SOUTH RAILEOAD Agent § 27 03 B 28 Remarks and Authorities )estination I't'n Xum- bcr Void 4-» «-f^ 15 Fare 16 Amount 17 Each Individual Sheet must bear a Separat irm Standard size, 14 by 17 inches. Figures in c Horizontal faint-line ruling to be one-fourth 105889°— 19. (To face page 3.34.) i"- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 No. AC-.jOl, approved October 23, 1918. C. A. Peodty. Each Individual Sbcct must bear a Separate T Staodard siw, 14 by 17 inches. Figures in cen' Fpnn Nq. AC-SOl, approved October 93, It n Form No (To be Inserted by Individual Carrier) REPORT OF INTERLINE TICKET At -2"- Remarks and Authorities Routes Sheet No of Sheets i^OfttH AND SOUTH RAILROAD Agent Class 10 One Way <-J' R.T <-J" Fare 11 Amount 12 <— J" 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Each Individual Sheet must bear a Separat^ Standard size, 14 by 17 inches. Fierures in c^ No. AC-502, approved October 23, 1918. Horizontal faint-line ruling to be one-fourth : C. A. Proutt. 105889°— 19. (To face page 334.) N^ 18 Of Skeleton Tickets and This Space Used in Auditor's Office for Binding Form No (To be inserted by indi%-idual carrier) UNITED STATES RAILROAD ADMINISTRATION W. G. McAdoo, Director General of Railroads NORTH AXD SOUTH EAILKOAD REPORT OF LOCAL EXCESS BAGGAGE COLLECTIONS Sheet No of Sheets At. ..( ) Month of 191 (Station No.) Agent Check No. Destination Total this Sheet State Dogs, Baby Carriages, Bi- cycles and Articles Charged for at Other Than Excess Baggage Rates Descrip- tion Rate per 100 Lbs. Amount 6 Excess Baggage Collections Excess Weight -¥'- Rate per 100 Lbs. Amount 9 Each individual sheet must bear a separate total and a recapitulation made on last sheet Form No. AC-503, approved October 23, 1918. C. A. Prouty. Standard size, 8i by 14 inches. Figures in center of columns give the approximate width of column in inches horizontal lamt-hne ruling to be one-fourth inch apart. Every fifth faint line and line above total to be heavy 105889°— 19. (To face page 334.) No. 3 Form No (To be inserted REPORT OF Form -11"- -*"- Each Individual 1 Standard size, 11| Horizontal fatnt-l 105889°—] (To be insCTtcd by Indlviduol Carriei) BBPORT OF INTEIILINE EXCES! UNTTRD STATES .. 1, llJbyUinchcs. FlgHresino lumos giTo tbe oproxlmate n FonD No. AC-504, approved Ootobu X r UNITED STATES RAILROAD ADMINISTRATION Sheet No. W. G. McAdoo, Director General of Railroads NORTH AND SOUTH KAttROAD REPORT OF TRANSPORTATION REQUESTS EXCHANGED FOR TICKETS ( ), for ,191.... (Station No.) FormNo (To be inserted by individual carrier) At. .Agent Description of request Description of ticket Number < i"- Department Issuing the Request Destination Form Number Fare i"~- Amount Form No. AC-505, approved October 23, 1918. C. A. Proutt. Standard size, 8^ by 14 inches. Figures in center of columns give the approximate width of column in inches Horizontal faint-line ruling tc be one-fourth inch apart. Every fifth faint line and line above total to be heavy 105889°— 19. (To face page 334.) No. 5 335 It is therefore ordere^. that actions at law, suits in equity, and proceedings in admiralty hereafter brought in any court based on contract, binding upon the Director General of Railroads, claim for death or injury to person, or for loss and damage to property, arising since December 31, 1917, and growing out of the possession, use, control or operation of anj'^ railroad or sj'stem of transportation by the Director General of Railroads, which action, suit, or proceed- ing but for Federal control might have been brought against the carrier company, shall be brought against William G,.McAdoo, Di- rector General of Railroads, and not otherwise; provided, however, that this order shall not apply to actions, suits, or proceedings for the recovei*y of fines, penalties, and forfeitures. Subject to the provisions of General Orders numbered 18, 18-A and 26, heretofore issued by the Director General of Railroads, service of process in any such action, suit or proceeding may be made upon operating officials operating for the Director General of Rail- roads, the railroad or other carrier in respect of which the cause of action arises in the same way as service was heretofore made u^^on like operating officials for such railroad or other carrier company. The pleadings in all such actions at law, suits in equity, or pro- ceedings in admiralty, now pending against any carrier company for a cause of action arising since December 31, 1917, based upon a cause of action arising from or out of the operation of any railroad or other carrier, may on application be amended by substituting the Director General of Railroads for the carrier company as party defendant and dismissing the company therefrom. The undei^igned Director General of Railroads is acting herein by authority of the President for and on behalf of the United States of America, therefore no supersedeas bond or other security shall be required of the Director General of Railroads in any court for the taking of or in connection with an appeal, writ of error, supersedeas, or other process in law, equity, or in admiralty, as a condition prece- dent to the prosecution of any such appeal, writ of error, supersedeas, or other process, or otherwise in respect of any such cause of action or proceeding. W. G. McAdoo, Director General of Railroads. General Order No. 51. Washington, Noverriber i, 1918. The majority of railroads under Federal control have already made announcement with respect to the preservation of seniority rights for employees who have entered the military service of the Army and 336 xsTavy, and have indicated that so far as practicable, preference in reemployment or reinstatement would be given to soldiers and sailors Avhen mustered out of the service. (1) In order that as nearly as practicable there shall be a uniform treatment of this matter, the following general principles will govern : (a) In the case of an employee having established seniority rights, so far as practicable, and where the employee is physically qualified, he will be restored to such seniority rights. (6) In the case of employees who do not have seniority rights under existing practices, a consistent effort will be made to pro- vide employment for them when mustered out of military service. (2) Upon railroads where the assurances given on this subject have been more specific than the provisions of paragraph (1) hereof, such assurances shall be observed. W. G. McAdoo, Director (reneral of Railroads. General Order No. 52. Washington, yocemher 8, 1918. It is hereby ordered that the following rules and regulations shall be observed and shall govern the recording of and accounting for all transactions of the hereinbelow described Carriers by AVater under Federal control, which arise during such control. 1. For accounting purposes, Federal control of Carriers by Water, owned, controlled or operated by Railroads began as of 12 :01 a. m. January 1, 1918, and of Carriers by Water specified in General Order #19, not so owned, controlled or operated as of 12 :01 a. m. April 13, 1918, Immediate steps shall be taken by each Carrier by Water subject thereto, to open new and separate books of accounts such as cash books, general and subsidiary ledgers and journals, and all supporting and subsidiary books and records incident thereto, upon which shall be recorded all transactions which arise under and are incident to Federal control, on and after the dates above mentioned. Such books shall be designated and arc hereinafter re- ferred to as Federal books. Reference made hereinafter to " De- cember 31, 1917 or April 12, 1918," is intended to designate the date corporate control terminated and the appropriate date applying to the carrier by Avater at interest shall be used in each case. The reference hereinafter to " January 1, 1918 or April 13, 1918 " is intended to indicate the date when Federal control began and the ai^propriate date shall be used in each such case by the carrier by water at interest. 2. The totals of the Accounts. Casli and sucli working funds as may be in the hands of agents, appearing on the Corporation books 337 at the end of corporate control, that is, as of December 31, 1917 or April 12, 1918, as the case may be, shall be transferred to the Fed- eral books debited to the accounts of the same titles and credited to a Deferred Liability Account styled " (name of corporation) cash, (December 31, 1917 or April 12, 1918)." On the Corporate books, the amount of such balance should be transferred to a Deferred Asset Account styled " U. S. Government-Cash (December 31, 1917 or April 12, 1918)." All cash transactions subsequent to (Decem- ber 31, 1917 or April 12, 1918) relating to operations prior or sub- sequent thereto, shall be recorded in the Federal cash book opened as of (January 1, 1918 or April 13, 1918). 3. The total of Accounts Net Balance Due from Agents, including working funds in their hands. Pursers and Stewards appearing on the Corporation's books as of (December 31, 1917 or April 12, 1918) shall be transferred to the Federal books, debited to an account of the same title and credited to a Deferred Liability Account styled ''(name of Corporation) Agents, Pursers and Stewards, (December 31, 1917 or April 12, 1918)." On the Corporation books the amount of such balance should be transferred to a Deferred Asset Account styled "U. S. Government-Agents, Pursers and Stewards Balances, (December 31, 1917 or April 12, 1918)." 4. The total of the several accounts appearing on the Corporation books under caption "Materials and Supplies," as of (December 31, 1917 or April 12, 1918), shall be transferred to the Federal books, debited to accounts of the same titles and credited to a Deferred Liability Accoimt styled " (name of corporation) Materials and Supplies, (December 31, 1917, or April 12, 1918) ." On the Corporate books the amount of such balance should be transferred to a Deferred Asset Account styled " U. S. Government — Materials and Supplies, (Dec. 31, 1917 or April 12, 1918)."' 5. In addition to the assets above specified, there shall likewise be transferred to the Federal books and similarly recorded therein, such other working assets appearing on the books of the corporation as of (December 31, 1917 or April 12, 1918), as may be mutually agreed upon between the Director General of Railroads and the Corporation. 6. There shall be currently entered upon such Federal books, in the manner and under the rules and regulations prescribed by the Interstate Commerce Commission, or which may hereafter be pre- scribed, all transactions involving Revenues, Expenses, Taxes, Rentals and such other items as are used in determining the Water Line operating income under Federal control. Such entries shall include corresponding Assets and Liabilities and the cash settlement thereof, also all transactions involving "Materials and Supplies subsequent to (December 31, 1917 or April 12, 1918)." 105889°— 19 22 338 T. Transactions of the Corporation including those arising out of cash receipts or disbursements, which do not affect or enter into and form a part of the AVater Line operating income under Federal con- irol, such as Interest and Dividends received and paid, and other similar Corporate transactions, including Additions, and Better- ments to Floating Equipment and Terminal Property, shall not be recorded on or passed through the Federal books, unless such trans- actions be negotiated and conducted for account of the Corporation by or under the direction of the Director General. Where such trans- actions are negotiated and conducted by or under the direction of the Director General, the transactions shall be recorded on the Fed- eral books, but credited or charged to an account styled " (name of corporation) Corporate Transactions." Concurrently corresponding entries should be made on the Corporate books, charging or credit- ing the accounts prescribed by the Interstate Commerce Commission or which may hereafter be prescribed : the Offset being in an account styled " U. S. Government — Corporate Transactions." Where Addi- tions and Betterments are made to Floating Equipment or Terminal Property by or under the direction of the Director General, the expenditures shall be charged on the Federal books to a Deferred Asset Account styled "(name of corporation) Additions and Better- ments." Concurrently entries should be made on the Corporate books, charging the appropriate accounts and crediting a Deferred Liability Account styled " U. S. Government — Additions and Better- ments." 8. Current or operating assets other than those prescribed in para- graphs 2, 3, 4, and 5 hereof, such as " Traffic Balances Owed by Other Companies," " Balances Due from Individuals and Companies," and such assets as are carried under the caption " Miscellaneous Accounts Receivable," and Liabilities such as " Audited Vouchers and Wages Unpaid," "Traffic Balances Owed to Other Companies." and "Mis- cellaneous Accounts Payable," which were due to or by the Corpora- tion as of (December 31, 1917 or April 12, 1918), shall not be trans- ferred in detail to the Federal books, but as and when such assets are collected or the liabilities are paid, they shall be credited or debited as the case may be on the Federal books, to a Deferred Lia- bility Account stjded "(name of Corporation) Assets, (December 31, 1917 or April 12, 1918) Collected" or to a Deferred Asset Account styled " (name of corporation) Liabilities (December 31, 1917 or April 12, 1918), Paid/' There should be made concurrently on the Corporate books corresponding entries debiting and crediting the U. S. Government with assets collected and liabilities paid. 9. Transactions relating to operations as defined in paragraph No. G hereof, if not previously accrued, shall be included in and form 339 a part of the operating results of each Carrier by Water under Federal control regardless of the date thereof. Items clearly appli- cable to the period prior to (January 1, 1918 or April 13, 1918), commonly called " lap-overs " shall be ascertained currently and set up on the Federal books and included in the appropriate accounts as heretofore. At the end of each month the total of the " lap-over' credit items shall be charged to an Unadjusted Debit Account styled ''Revenue Prior to (January 1, 1918 or April 13, 1918,)" and credited to a Deferred Liability Account styled " (name of corpora- tion) Revenue Prior to (January 1, 1918 or April 13, 1918)". The total of "lap-over'' debit items shall be credited to an Unadjusted Credit Account styled " Expenses Prior to (January 1, 1918 or April 13, 1918)" and charged to a Deferred Asset Account styled "(name of corporation) Expenses Prior to (January 1, 1918 or April 13. 1918)". Operating Revenues which have been accrued currently in accordance with the established practice of the Carriers by Water shall be considered as current revenuas and not as " lap-over " items. All sailings prior to midnight (December 31, 1917 or April 12, 1918), and all revenues and expenses applicable thereto shall be considered as revenues and expenses of the Corporation or previous operator and if such transactions be concluded by the Federal interests such items shall be considered as " lap-overs " and handled in the accounts accordingly. All revenues and expenses applicable to sailings after midnight of the dates mentioned as the case may be, shall be con- sidered revenues and expenses of the Director General. If during the month of April, 1918, expenses be incurred on a monthly basis, which cannot be directly assigned to an individual vessel or to the period either prior or subsequent to April 12, 1918, such as general expenses, overheads, etc., such expenses for convenience of accounting shall be assigned 12/30ths or 40% to the corporate interests and 18/30ths or 60% to the Federal interests; the same principle should apply to apportionment of revenues of a similar character accrued during the month of April, 1918. 10. The Accounts between the U. S. Government and the Cor- poration for which provision is made herein shall be adjusted in such manner as may be hereafter mutually agi'eecl iipon. 11. Inquiries as to interpretations and application of the provisions of this order and the procedure to be observed under its require- ments, shall be addressed to the Director of Public Service and Ac- counting, Washington, D. C. W. G. McAdoo, Director General of Railroads. 340 General Order No. 53. Washington, November IS, 1918. Whereas certain of the raih'oads now under control of the Director General have in existence at this time agreements with the Order of Railroad Telegraphers, Switchmen's Union of North America, Brotherhood of Railway Clerks, and United Brotherhood of Mainte- nance-of-Way Employees which provide for basis of compensation and regulations of employment ; and Whereas in existing circumstances it is the duty of both officers and employees of the railroads under Federal control promptly and equitably to adjust an}^ controversies which may arise, thereby elimi- nating misunderstandings which tend to lessen the efficiency of the service. It is hereby ordered, That the basis arrived at in the annexed understanding between Messrs. A. H. Smith, C. H. Markham, R. H. Aishton, Hale Holden, B. F. Bush, B. L. Winchell and N. D. Maher, Regional Directors, representing the railroads in their respective regions, which now have, or may hereafter have such schedules or agreements with the chief executive officers of the Order of Railroad Telegraphers, Switchmen's Union of North America, Brotherhood of Railway Clerks, and United Brotherhood of Maintenance-of-Way Employees, be and the same is hereby, adopted and put into effect as of November 1'2, 1918. W. G. McAdoo, Director General of Railroads. Meirooraiidum of an Under standing between Messrs. A. H. SmUh, C. II. Markham, R. II. Aishton, Hale EoUen-, B. F. Bush, B. L. Winchell, N. D. Mahcr, Regional Directors, representing the rail- roads in their respective regions, and Mr. H. B. Perhamth, Presi- dent, Order of Railroad Telegraphers; Mr. S. E. Ileherling, Prts'dent, Stcitchnun^s Union of North America; Mr. J. J. For- rester, President, Brotherhood of Railway Clerks; Mr. A. E. Banker, President, United Brotherhood of Maintenance-of-Way Employees. It is rNDERSTooD. That all controversies growing out of the inter- pretation or application of the provisions of the wage schedules or agreements Avliich are not promptly adjusted by the officials and the employees on any one of the railroads operated by the Government shall be disposed of in the following manner : 1. There shall be at once created a connnission, to be known as Railway Board of Adjustment No. 3, to consist of 8 members. 4 to be selected by the said regional directors and compensated by the ra 341 ,.ailro and Working Conditions, shall be decided by the Railway Board of Adjustment No. 3, when properly presented to it. 9. Wages and ho\u's, when fixed by the Director General, shall be incorporated into existing agreements on the several railroads, and should differences arise between the management and the employees of any of the railroads as to such incorporation, such questions of difference shall be decided by the Railway Board of Adjustment No. 3, when properly presented, subject always to review by the Director General. 342 10. Personal grievances or controversies arising under interpreta- tion of wage agreements, and all otiier disputes arising between officials of a railroad and its employees, covered bj^ this understand- ing, will be handled in their usual manner by general committee of the employees up to and including the chief operating officer of the railroad (or some one officially designated by him), when, if an agreement is not reached, the chairman of tlie general committee of employees may refer the matter to the chief executive officer of tlie organization concerned, and if the contention of the employees' com- mittee is approved by such executive officer, then the chief operating officer of the railroad and the chief executive officer of the organiza- tion concerned shall refer the matter, with all supporting papers, to the Director, of the Division of Labor of the United States Railroad Administration, who will in turn present the case to the Railway Board of Adjustment No. 3, which board shall promptly hear and decide the case, giving due notice to the chief operating officer of the railroad interested and to the chief executive officer of the organi- zation concerned of the time set for hearing. 11. No matter will be considered hy the Railway Board of Adjust- ment No. 3 unless officially referred to it in the manner herein pre- scribed. 12. In hearings before the Railway Board of Adjustment No. 3, in matters properly submitted for its consideration, the railroad shall be represented by such person or persons as may be designated by the chief operating officer, and the employees shall be represented by such person or persons as may he designated by the chief executive officer of the organization concerned. 13. All clerical and office expenses will be paid by the United States Railroad Administration. The railroad directly concerned and the organization involved in a hearing will, respectively, assume any expense incurred in presenting a case. 14. In each case an effort should be made to present a joint con- crete statement of facts as to any controversies, but the board is fully authorized to require information in addition to the concrete statement of facts, and may call upon the chief operating officer of the railroad or the chief executive officer of the organization con- cerned for additional evidence, either oral or written. 15. All decisions of the Railway Board of Adjustment No. 3 shall bo approved by a majority vote of all members of the board. 16. After a matter has been considered by the board, and in the event a majority vote can not be obtained, then any six members of the board may elect to refer the matter upon which no decision has been reached to the Director General of Railroads for a final decision. 343 17. The Railway Board of Adjustment Xo. 3 shall keep a complete and accurate record of all matters submitted for its consideration and of all decisions made by the board. 18. A report of all cases decided, including the decision, will be filed with the Director, Division of Labor of the United States Rail- road Administration, with the chief operating officer of the railroad affected, the several regional directors, and with the chief executive officers of the organizations concerned. 19. This understanding shall become effective upon its approval by the Director General of Railroads and shall remain in full force and effect during the period of the present war, and thereafter, unless a majority of the regional directors, on the one hand, as representing the railroads, or a majority of the chief executive officers of the organ- izations, on the other hand, as representing the employees, shall desire to terminate the same, which can, in these circumstances, be done on thirty (30) days' formal notice, or shall be terminated by the Director General himself, at his discretion, on thirty (30) daj'^s' formal notice. R. H. AisHTON, A. H. Smith, B. L, WiNCHELi., C. H. Markham, N. D. Maker, B. F. Bush, Hale Holden, Regional Directors for the Railroads vmder Governrnent Control. H. B. Perham, S. E. Heberling, Pres, Order of Ry. Telegraphers. Pres. S'witohmen''s Union of N. A. Jas. J. Forrester, A. E. Barker, President Brotherhood of Ry. Clerks. Pres. United Broth- erhood of Mainte- nance - of - ^yay Employees and Railroad Shop Laborers. General Order No. 54. Washixgtox, Novemher 13., 1918. Whereas in Supplement No. 9 to General Order No. 27 the Board of Railroad Wages and Working Conditions were assigned the duty of hearing and investigating matters presented by officers and em- ployees of the American Railway Express Company, or their repre- sentative, affecting wages and working conditions; and "\^liereas no tribunal has heretofore been created for the adjust- ment of disputes arising between the American Railway Express Company and its employees other than those affecting wages and working conditions: 344 It is hereby ordered, That the Division of Labor of the ITnited States Raih'oad Administration will hear and investigate, and rec- ommend adjustments of any disputes! between said Express Com- pan}' and its employees not affecting wages and working conditions. Any such dispute shall be transmitted to the Director of the Di- vision of Labor, in accordance with procedure established by him, being substantially as follows : Personal grievances or controversies will be handled in the usual manner by the individual, his representative, or by committees of employees, up to and including the chief operating officer of the American Railway Express Company, or officer designated by him, when, if an agreement is not reached, the individual, his representa- tive or the chairman of his Committee and the officer of the Express Company Avill refer the matter to the Director of the Division of Labor. A complete statement of the cause of complaint will be filed with the Director of the Division of Labor. When an adjustment is not reached through correspondence, a representative will be assigned to investigate, and if by his assistance no agreement is then reached, the matter in controversy will be referred again to the Director of the Division of Labor. General Order No. 8, issued February 21, 1918, shall also be appli- cable to employees of the American Railway Express Company, ex- cept where the text of same is clearly not applicable. Especial at- tention is directed to Article 5 of (reneral Order No. 8, as follows: No discrimination will be made in the employment, retention, or conditions of employment of employees becanse of membership or nonraembership in labor organizations. Now that a proper method has been established for the adjust- ment of controversies there is no longer any occasion or excuse for employees of the Express Company adopting other methods for se- curing what they believe is jusl treatment. I quote from General Order No. 8 as follows, and urge that the officials and employees of the American Railway Express Company be governed thereby: There must be cooperation, jiot antagonism : confidence, not suspicion ; mu- tual helpfulness, not grudging performance; just consideration, not arbitrary disregard of each other's I'ights and feelings; a fine discipline based on mutual respect and sympathy; iiiul ;in earnesr desire to serve the great public faitli- fiilly and efficiently. This is tlie new spirit and purpose that must pervade every part and branch of the natiouiil v;iilroad service. W. G. McAdoo, Dirprfor Oeneral of Railroada. 345 General Order No. 55. coiilection of transportatiok charges and disposition of over- charges, undercharges, and agency relief claims. Washington, Noveinber' H, 1918, The following regulations shall govern the assessment and collec- tion of transportation and other charges for all services performed by carriers under Federal control; the refund of overcharges, and the collection of undercharges, and also the disposition in the accounts of such carriers of uncollectible undercharges and agency relief claims. (1) Officers and agents of carriers under Federal control are re- quired and expected to collect the correct amount due for each service performed, determined or determinable by the application of the lawfully published rate or rates applicable to such services, plus charges for intermediate or terminal service not included in and made a part of such rate or rates, and war taxes applicable to the fore- going. (2) They shall continue, or if not already established, institute such methods as may be necessary to insure, as accurately as possible, the correctness of such charges before the collection thereof. (3) When the amount of overcharge is detei mined after collec- tion of charges, refund shall be made on presentation of original freight receipt, and the amount of such refund shall be indorsed on such receipt. (•i) Formal claims for overcharge presented by claimants shall be prepared on the standard form approved by the Inter- state Commerce Commission. They shall be supported by the original paid freight receipt, and if claim is based on weight, misrouting, valuation, etc., by all other obtainable documents or particulars. If the original paid freight receipt can not be presented, claimant's indenniity bond may be required. If overcharge is based on the rate clear, reference shall be shown to the tariff or base in which the rate claimed is published. Such formal claims shall be presented to, and adjusted by, either the initial or the destination carrier. If claims are presented to inter- mediate carriers, they shall be immediateh^ transmitted to one of those named. 346 (5) Claims paid by carriers other than the carrier which col- lected the freight charges shall, in the discretion of the accounting officer, be sent to such collecting carrier to be registered, in order that duplicate payments may be avoided. (6) No apportionment shall be made among carriers of over- charge claims paid, or of agency relief claims covering charges absorbed, such as switching, elevation, transfer charges, terminal delivery charges, icing, cost of grain doors, or other analogous items. This rule does not ap- ply to claims for charges on freight destroyed or con- fiscated. (7) Claims for overcharges which can not be refunded by agents shall be promptly forwarded to the proper officer having jurisdiction. Such officer, upon receipt of such claims, properly supported, shall take immediate steps, consistent with accuracy, to determine the correct charge applicable. If the amount claimed be found correct, or if an over- charge in any amount be found, such amount shall be promptly refunded, and any difference between the amount claimed and the amount refunded clearly ex- plained to the claimant. If the claim be wholly invalid, the claimant shall be notified promptly. (8) In the event an undercharge be developed after collection of transportation charges, or in the investigation of a claim or otherwise, the officer or agent having jurisdic- tion shall promptly prepare a freight bill for such under- charge, upon which bill shall be shown all facts incident to the transaction ; and such freight bill shall be promptly presented for collection. (9) The duty of collecting such undercharge shall rest with the officer or agent whose duty it is to collect transportation charges, and he shall exhaust every reasonable effort to collect such amounts. (10) In the event of failure to make collection of an under- charge, after every reasonable effort has been made to do so, the officer or agent charged with the duty of collecting the undercharge shall promptly transmit the bill therefor, wnth a statement of all facts incident to his efforts and faihire to collect, to the accounting officer having juris- diction. Appropriate adjustment of the agent's accounts shall be made by station claim or otherwise, according to the established practice of the carrier. 347 (11) If the facts presented with such undercharge indicate that every reasonable effort lias been made to collect it, appro- priate action shall be taken as follows: («) If a bill for an undercharge be for live dollars ($5.00) or less in any one case, and in the exercise of his busi- ness judgment he concludes that further efforts lo collect would be futile, the chief accounting officer shall direct that it be charged off'. (h) If a bill for an undercharge be for more than five dol- lars ($5.00), in any one case, it shall be promptly- transmitted by the accounting officer to the chief coun- sel of the carrier interested, and his recommendations as to its disposition shall be followed. (c) If the party liable for the undercharge can not be lo- cated, or service can not be had, or where, upon in- vestigation by counsel in good faith, it is found that legal process would be futile and ineffectual, counsel shall direct the claim to be charged off, and it shall be so disposed of: otherwise, suit shall be entered for its collection. (12) All undercharges determined to be uncollectible as pre- scribed in subparagraphs (a), (&), and (c), of para- graph (11) hereof, shall be borne by the carrier which originally settled the freight charges on the erroneous basis, regardless of the responsibility for such error in settlement. (13) In the event that suit be instituted to collect an under- charge, the cost of such suit shall be borne by the suing carrier. If the undercharge be not collected under suit, the amount thereof shall be disposed of as provided in paragraph (12) hereof. (14) In the event freight be destroyed or confiscated in transit. so as to preclude the possibility of delivery of the freight or collection of the charges, no part of the freight charges accruing thereon to any participating carrier shall be included in interline accounts. If waybills have been audited and settled before information concerning the destruction or confiscation of the property is avail- able, such waybills shall be made void, and resettled with participating carriers by correction account or through claim channels. 348 (15) The provisions of this order shall apply to overcharges, un- collectible undercharges, and to other charges herein referred to, which accrued or which may accrue on and subsequent to January 1. 1918. Settlements which have already been completed on the basis of rules heretofore in effect, shall not be readjusted. W. G. :McAdoo, Virector General of Railroads. General Order Xo. 56. Washington, Xovernhep 19^ 1018. Whereas it has been found and is hereby certified to the Interstate Commerce Commission that in order to defray the expenses of Fed- eral control and operation fairly chargeable to express and railway operating exj)enses, and also to pay express and railway tax accruals other than war taxes, net rents for joint facilities and equipment, and compensation to the carriers, it is necessary to increase the express operating revenues, and Whereas the public interest requires that a general advance in all express rates and charges on all traffic carried by the American Eail- way Express Company taken under Federal control under an act of Congress approved August 29. 1916. entitled " An act making appro- priations for the support of the Army for the fiscal' year ending June thirtieth, nineteen hundred and seventeen, and for other pur- poses." shall be made by initiating the necessary rates and charges, classifications, regulations and practices, by filing the same with the Interstate Commerce Commission, under authority of an act of Con- gress approved INIarch 21. 1918. entitled " An act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes.'' Now. therefore, under and by virtue of the provision of the said act of March 21, 1918. it is ordered that all existing express rates and charges, classifications, regidations and practices, including changes lieretofore published but not yet effective, on all traffic carried by said American Railway Express Company, be increased, changed, modified or adopted, effective the first day of January, 1919, to the extent and in the manner indicated herein, by filing schedules with the Interstate Commerce Commission effective on not less than one day's notice. SECTION 1. Between points in Zone 1 and between points in Zone 1 and points in all other Zones, the first and second class rates, both interstate 349 and intrastate, ^hall be increased three scale numbers. Between points both outside of Zone 1, the first and second class rates, both interstate and intrastate, shall be increased two scale numbers. Merchandise rates from points in the United States to points in Canada sliall be increased 15 cents per 100 pounds, and commodity rates not stated in scale numbers shall be increased 10 cents per 100 pounds. SECTION 2. Commoditj^ rates, both interstate and intrastate, stated in scale numbers shall be increased not more than 10 cents per 100 pounds. Commodity rates, both interstate and intrastate, Avhich are stated in cents or in dollars and cents per 100 pounds, per pound or other unit of weight, shall be increased 10 cents per 100 pounds, except as to mileage or commodity rates on milk and cream. Commodity rates, both interstate and intrastate, which are stated in cents or in dollars and cents per crate, barrel or other package or per car, shall be in- creased at the rate of 10 cents per 100 pounds based upon the author- ized billing weight. SECTION 3. Milk and cream mileage or commodity rates, both interstate and intrastate, shall be made 25 per cent higher than rates in effect July 1. 1918. SECTION 4. Intrastate first and second class rates in States which have not adopted the existing Interstate Commerce Commission basis of first and second class rates, shall be made the Sfime as the increased inter- state rates in the same Zone. In States which did not adopt the increase of 10 per cent on com- modity rates on intrastate traffic as authorized by the Interstate Com- merce Commission on interstate traffic, by Fifteenth Section Order No. 746, such commodity rates shall be increased 10 per cent and in addition increased 10 cents per 100 pounds, except on milk and cream which shall be made 25 per cent higher than rates in effect July 1. 1918. SECTION 5. Where prior to January 1, 1919, the Interstate Commerce Com- mission authorizes or prescribes rates and charges which have not been published pi-ior to that date, the rates and charges initially established hereunder may be subsequently revised by applying the increases prescribed herein to the rates and charges so authorized or prescribed by the Interstate Commerce Commission. SECTION 6. All rates and charges, both interstate and intrastate, shall be governed by and apply in connection with the Tariff of First and Second Class Express Rates I. C. C. No. 2, Directory of Express Sta- tions I. C. C. No. A-3. Official Express Classification I. C. C. No. 150, Directory of Collection and Delivery Limits I. C C No A-A, also Terminal and Switching Charges I C. C. No. A-2095, on file with the Interstate Commerce Commission, and supplements thereto and re-issues thereof, which shall be adopted by filing notice with the Interstate Commerce Commission. SECTION" 7, All intrastate rates which are to be increased under this order, if not now on file, shall be immediately filed with the Interstate Commerce Commission. Such intrastate rates shall not be applied to interstate shipments and the schedules containing said rates shall be so restricted. SECTION 8. xVll schedules published to cover express rates and charges, classi- fications, regulations and practices under the provisions of this order shall bear on the title-page one of the legends shown below in bold- face type. If restricted to apply on intrastate traffic only, use the following: " The rates and charges made effective by this schedule are initiated by the Prasident of the United States through the Director General, United States Railroad Administration, and apply on intrastate traffic only. " This schedule is published and filed on not less than one day's notice with the Interstate Commerce Commission under General Order No. 56 of the Director General, United States Railroad Admin- istration, dated 19th day of November, 1918." If restricted to apply on interstate traffic only, use the following: " The rates and charges made effective by this schedule are initiated by the President of the United States through the Director General, United States Railroad Administration, and applj'' to interstate traffic only. '• This schedule is published and filed on not less than one day's notice with the Interstate Commerce Commission under General Order No. 50 of the Director General, T'^'nited States Railroad Admin- istration, dated 19th day of November, 1918." If to appl}'^ on both intrastate and interstate traffic, use the fol- lowing: 351 " The rates and charges made efFective by this schedule are ini- tiated by the President of the United States through the Director General, United States Railroad Administration, and apply to both interstate and intrastate traffic. " This schedule is published and filed on not less than one day's notice with the Interstate Commerce Commission under General Order No. 56 of tlie Director General, United States Railroad Admin- istration, dated 19th day of November, 1918." If some of the rates and charges therein are to apply on interstate traffic and others to intrastate traffic, use the following: " The rates and charges made eifective by this schedule are initiated by the President of the United States through the Director General, United States Railroad Administration, and apply to interstate and intrastate traffic, as provided herein. " This schedule is published and filed on not less than one day's notice with the Interstate Commerce Commission under General Order No. 56 of the Director General, United States Railroad Ad- ministration, dated 19th day of November, 1918." Given under my hand this the 19th day of November, 1918. W. G. McAdoo, Director General of Railroads. General Order No. 57. Washington, November 26, 1918. RULES GOVERNING THE INSPECTION, SELECTION AND COOPERING OR REJECTION OF CARS FOR BULK GRAIN LOADING, THE RECORDING OF LOSS OF GRAIN FROM CAR BY LEAKAGE (iF ANy) DURING TRANSIT, AND THE DISPOSITION OF CLAIMS FOR LOSS AND DAMAGE OF GRAIN. Claims on grain shipped in bulk constitute a large proportion of loss and damage claims. Some of the widely varying practices of both shippers and carriers with respect thereto are of doubtful pro- priety, and in manj' cases result in undue preference and unjust discrimination. This condition may be attributed largely to the great number of intricate factors entering into the grain business; the condition of scales and weighing practices, which, in many instances, result in weights of doubtful accuracy. Grain in bulk is sometimes loaded at large terminal elevators where so-called official weights are obtained ; in other instances, at country elevators where weights are obtained on small scales in many drafts; and in other instances Avhere scale weights are not used but loading weights obtained on measurement basis; and at some points where no elevators are located, grain is ^veighed over wagon scales, loaded into cars and the sum of the wagon scale weights used to represent the amount shipped. Destination weights are arrived at in as many dilTerent ways as the loading weights, but, as a general rule, the bulk of the grain shipped is destined to terminal markets where official weights are secured, and the differences between these loading and destination weights constitute the basis of claims, although losses resulting from the taking of samples for inspection purposes and the failure of con- signee to unload all the grain and other wastage, over which the rail- road has no control, are not taken into consideration or accounted for. In view of the foregoing, there is no good reason why carriers should assume responsibility for claims, the basis of which is solely the difference between these loading and out-turn weights. Therefore, claims for loss of bulk grain will be recognized only where there is evidence of negligence on the part of the carriers. Leaks due to improper coopering of cars or placing of gi'ain door boards are not to be considered as evidence of negligence on the part of the carrier, and the following rules shall apply until superseded by others that may be adopted as a result of investigation and study of the subject now being carried on by carriers and shippers in con- nection with the Interstate Commerce Commission. At the present time there is lack of uniformity in the disposition of grain claims. One purpose of these rules is to clear up this pres- ent situation and dispose of promptly such claims as come within these regidations. Rule 1. — Selection of Cars for Loading. Suitable cars will be furnished for bulk grain loading. (See Defi- nition.) Definition. — A suitable c:ir for bulk grain loading is one that is grain tight and fit or can be made so by the shipper at time and place of loading by ordi- nary and proper care in use of cooperage material and by a reasonable amount of cleaning. Rule 2. — Rejection by Shipper. While carriers are expected to furnish suitable equipment, it is the duty of the shipper to reject a car which is unfit for the loading intended. Shippers should not load bulk grain in a car with door post shat- tered or broken, or with other defects of such character as to render car obviously unfit, or with inside showing the presence of oil. creosote, fertilizer, manure, coal or other damaging substance of like or kindred character. 353 Rule 3. — Cooperage. Grain doors, or grain door lumber of proper quality and dimen- sions will be furnished by the ean-ier and installed by the shipper to cooper side and end doors and other openings of cars used for bulk grain loading. Note 1. — Carrier's agent at loading station will ascertain the number of temporai*y sectional grain doors, or the number of feet (board measure) of grain door lumber used to cooper the car and the approximate weight thereof, and note same on waybill. Note 2. — Should the carrier's supply of grain door material run short, local agent will promptly notify his superintendent, who will immediately send the required material or authorize local agent to purchase a supply to take care of the emergency. Note 3. — Shippers or consignees must not appropriate carriers' grain doors or grain door material, neither shall they use the same ^\athout specific authority from the carrier. Accessories' such as nails, paper, cheesecloth, burlap or similar material for calking or lining cars, required to prevent loss of grain by leakage, shall be supplied by the carrier and applied by the ship- per or at his expense. Rule 4.— CYixsigxor, Consignee or Owner Required to Load and Unload Carload Freight. Except as otherwise provided by tariff, owners are required to load into or on cars grain carried at carload ratings, and consignee or owner is required to unload the car. which includes the removal of entire contents, including sweeping the car. Loading includes adequate securing of the load in or on car, also proper distribution of the weight in the car by trimming or leveling. Rule 5. — Shipping Weights. Where shipper weighs the grain for shipment, he shall furnish the carrier with a statement of the car initials and number, the total scale weight, the type and house number of the scale used, the num- ber of drafts and weight of each draft weighed, the date and time of weighing, and state whether official Board of Trade. Grain Ex- change, State or other properly supervised shipping weights; also state number and approximate weight of grain doors used. This in- formation shall be furnished as soon as practicable, forwarding of car not to be delayed for this record. Rule 6. — Destination Weights. Consignee shall furnish the carrier with a statement of the car initials and number, the total scale weight, the type and house num- 105880 ° —1 9 2.3 354 )3er of the scale used, the number of drafts and weight of each draft weighed, and date and time of weighing, and state whether official Board of Trade. Grain Exchange, State or other properly supervised unloading weight. Rule 7. — Leakage or Damage Record. If damage to or leakage of grain is detected while in carrier's possession, the necessar}^ repairs must be made to prevent further loss or damage and a complete record mack thereof. In case of a disputed claim, the records of both carrier and claimant on said car shall be made available to both parties. If shipper, consignee, owner or his or their representative should discover leakage of grain from car, he must immediately report the facts to carrier and afford reasonable opportunity for verification. The result of hammer testing will not be accepted as proof of loss. Rule 8. — Claims on Clear and Defective Record Cars. {a) Clear Record Cars: If, after thorough investigation by the carrier, no defect in equipment or seal record is discovered, sucli record shall be considered to show that the carrier has delivered all of the grain that was loaded into the car. If eA-idence is produced by the claimant indicating a defective record, such evidence shall be investigated and given due consideration. (&) Defective Record Cars: Where investigation discloses de- fect in equipment, seal or seal record, or a transfer in transit by the carrier of a car of grain upon which there is a difference between the loading and unloading weights, and the shipper furnishes duly attested certificates showing correctness of weights, and the carrier can find no defect in scale or other facilities and no error at points of origin or destination, then, the resulting claims will be adjusted subject to deduction of one-eighth of 1 per cent of the established loading weight as representing invisible loss and wastage. XoTE. — Transfer in transit, as referred to in Section " b" of tliis rule, is a transfer for wliicli ttie railroad is responsible, and not a transfer because of a trade rule, Oovornniental requirement, or because of orders of consitiiior, cou- sipnee, owner or tlicii- representative. {c) Leaks over or through grain doors and other leaks due to im- proper cooi)ering by shipper shall not be considered defects for which the carrier is responsible. W. G. jMcAdoo, Director General of Railroads. LIST OF CIRCULARS. 1. First seven staff appointiiieuts. 2. Creation of Car Service Section. 3. Creation of Locomotive Section. 4. Creation of Interregional Traffic Committee. 5. Creation of Marine Section. 6. Creation of Committee on Inland Waterways. 7. Creation of Safety Section. S. Railroads instructed to furnish certain employees statements td facilitate income-tax returns. 9. Creation of Division of Capital Expenditures. 10. Expenses re New York offices. 11. Supplemental instructions re General (Jrder No. 9. 12. Instructions re cash on hand December 31, 1917. 13. Liberty loan investments by railroads. 14. Creation of Protection of Railroad Property Section. 15. Creation of Inspection and Test Section. 16. Creation of Car Relief Section (corrected to Apr. 1 1. 17. Instructions re expense of officers, etc., not connected with operation. 18. Railroad subscriptions to third Liberty loan. 19. Appointment of acting treasurer. 20. Alleged protests re General Order No. 8. 21. Fire insurance contracts. 22. Organization of Railwny Board of Adjustment No. 1. 23. Creation of Coastwise Steamship Advisory Committee. 24. Comments re Railroad Wage Commission investigation and plea to buy Liberty bonds. 25. Progress of authorized editions and betterments and equipment. 26. Appointment of Walker D. Hines as Assistant Director General of Railroads. 27. Appointment of Theodore H. Price actuary. 28. Appointment of C. H. Markham regional director, Allegheny Region. Supplement No. 1. Railroads included in Allegheny Region July 10, 1918. 29. Appointment of B. L. Winchell regional director, Southern Region. 30. Appointment of N. D. Maher regional director, Pocahontas Region. Supplement No. 1. Pocahontas Region — Ashland Coal & Iron Railway — Included July 10, 1918. 31. Organization of Board of Railroad Wages and Working Conditions. 32. Division of Operation created. 33. Appointment of R. H. Aishton regional director. Northwestern Region. Supplement No. 1. Railroads included in Northwestern Region July 10, 1918. 34. Appointment of Hale Holden regional director, Central Western Region. Supplement No. 1. Central Western Region — Railroads included July 10, 1918. 35. Appointment of B. F. Bush regional director, Southwestern Region. Supplement No. 1. Southwestern Region — Railroads included July 10, 1918. 36. L'rging railroad employees to invest in War Savings Stamps. 37. Appointment of Oscar A. Price Assistant to the Director General of Railroads. 38. Organization of Railway Board of Ad.iustment No. 2. (355) 356 39. No agreement be reached between officials and employees of any railroad to adjust differences except as provided in General Orders Nos. 13 and 29. 40. Special representative United States Railroad Adminit'tratiou — T. C. Pow^ ell appointed ; also to continue duties as Manager of Inland Traffic. 41. Eastern Region— Railroads added July 10, 1918. 42. Southern Region— Railroads added .Tuly 10, 1918. 43. Registration and conversion of Liberty Bonds. 44. Road or sti'eet construction and other publiss itf or damage to property by tire. 68. Railroads transferred— Allegheny to Eastern Region— Eastern to Alle- gheny Region. 60. Creation of Secret Service and Police Section, W. J. Flynn appointed Chief. CIRCULARS ISSUED BY THE DIRECTOR GENERAL OF RAILROADS. Circular No. 1. AVashington, D. C, Fehnuiiy 9, 191S. I hereby announce the organization of my staff as follows : Assistant to the Director (leneral, Walker D. Hines. General counsel. John Barton Payne. Director Division of Finance and Purchasing. John Skelton AVil- liams. Director Division of Transportation, Carl K. Gray. Director Division of Traffic. Edward Chambers. Director Division of Labor, W. S. Carter. Director Division of Public Service and Accounting, Charles A. Prouty. Additional divisions will be created from time to time as conditions may justify. W. G. McAdoo, Directoi' General of Railroads. CiRCTXAR Xo. '2. Washixgtox, D. C. Fehrmry 6, 1918. For the handling of car service and other matters formerly in charge of the commission on car service of the American Raihvay Association, the Car Service Section of the Division of Transporta- tion is hereby created. Mr. W. C. Kendall is appointed manager of the Car Service Section ; and Messrs. W. L. Barnes, E. H. De Groot, jr., A. G. Gutheim, C. B. Phelps, G. F. Eichardson, and J. A. Som- erville are appointed assistant managers. The Car Service Section — (a) Will have charge of all matters pertaining to car service, in- cluding the relocation of freight cars. (h) Will provide through the regional director, on application of ])roper govermiiental authorities, for preference in car supply and movement, where more than 10 cars are involved. (c) Will receive from railroads such reports, periodical or special, as it may require in order to keep fully informed with respect to car service, embargo, or transportation conditions. id) Must be promptly informed of all embargoes placed, modi- fied, or removed, and will, from time to time, recommend such em- (3.57) 358 bargo policies and exemptions as the needs of the Government, sea- sonal requirements, or other circumstances may demand. (e) Will deal directly with railroads with respect to matters within its jurisdiction, and will keep the regional directors, properly advised. W. G. McAdoo, Director General of Railroads. C1RCUL.AR No. 3. Washington, D. C, February P, 1918. The Locomotive Section of the Division of Transportation is here- by created, and Mr. Frank McManamy appointed manager, with office in the Interstate Commerce Building, Washington, D. C. The manager of the Locomotive Section will supervise the con- dition of, and repairs to, locomotives at all railway shops and round- houses and at outside shops, in addition to his present duties for the Interstate Commerce Commission as its chief inspector of loco- motives. W. G. McAdoo, Director General of Railroads. Circular No. i. Washington, D. C, Fehr-uary ^, 1918. I hereby appoint an interregional traffic committee consisting of B. L. Winchell, traffic director of Union Pacific; G. F. Randolph, commissioner trunlf lines; T. C. Powell, vice president southern rail- ways. This committee is to make a study of the larger traffic movements with a view to seeing what steps can be taken advantageously in order to shift traffic from the more seriously congested gateways to the less congested gateways and from the more congested ports to the less congested ports, as well as the more advantageous distribution of such traffic. The situation will be viewed from the standpoint of a national railroad system consisting of all the railroads instead of, as heretofore, from the separate standpoints of independent and com- petitive railroads. The commission will deal principally with the questions affecting movements of traffic between the three regions and its work will not interfere with similar studies which will be conducted under each of the three regional directors with reference to matters within their respective jurisdictions. W. G. McAdoo, Director General of Railroads. 359 Circular No. 5. Washington, Fehruary 15^ 1918, The Marine Section of the Division of Transportation is hereby created, and Mr. W. H. Pleasants is appointed manager with office at Washington, D. C. The manager of the Marine Section will supervise the operation of the shipping under the control of the director general and will also give special attention to coordinating the relations between all other shipping (including that on the Great Lakes) and the railroads. W. G. McAdoo, Director General of Railroads. Circular No. 6. Washington, February 16^ 1918. I hereby appoint a committee on inland waterways consisting of Maj. Gen. W. M. Black, Chief of Engineers, United States Army, chairman; Mr. Walter S. Dickey, of Kansas City, Mo.; Mr. G. A. Tomlinson, of Duluth, Minn. ; Col. Charles Keller, Corps of Engi- neers, United States Army, secretary. This committee is to make a prompt investigation and to report as soon as practicable a definite plan describing the extent to which and the manner in which additional use may be made of the internal waterways for the economical and expeditious movement of traffic of the country so as to relieve or supplement the railways under existing war conditions. While the entire waterway and transportation situa- tion is to be scrutinized, only those waterways that will effectively afford national relief shall be included in the plan to be presented. W. G. McAdoo, Director General of Railroads. Circular No. 7. Washington, D. C, Fehruary 19, 1918. The Safety Section of the Division of Transportation is hereby created, and Mr. Hiram W. Belnap appointed manager, with office in the Interstate Commerce Building, Washington, D. C. The manager of the Safety Section will have supervision over the safety work on all railroads, utilizing such safety organizations as are already available and suggesting such others as are desirable, in addition to his present duties for th^ Interstate Commerce Commis- sion as chief of its bureau of safety. W. G. McAdoo, Director General of Railroads. . 360 ClRCTJLu\R Xo. 8. Washington, March 2, WIS. It is represented that numerous railroad employees who are not paid fixe(rector General of Railroads. Circular Xo. 9. Washington, D. C, Mao-ch 12, 1918. The Division of Capital Expenditures is hereby created and Judge Robert 8. Lovett is appointed director thereof, Avith office in the Interstate Commerce Building, AYashingtin, D. C. W. G. McAdoo, Director General of Railroads. Circular Xo. 10. Washington, March IS, 191S. The question has been raised as to whether the Government ought to pay any part of the expense of the Xew York offices (including salaries of officers at New Y'ork) of railroad companies, except to the extent that such expenses are on account of operating offices properly located at New York; and, on the same principle, as to wdiether the Government is under any obligation to pay the expenses of offices of any of the companies in any locality devoted to financial and corporate matters as distinguished from matters pertaining to the physical operation of the railroad properties. Even if it should be decided t^liat the necessary expenses for some of the purposes for which such New York offices, and to some extent similar offices at other places, should be chargeable against the Gov- ernment, it seems very clear that in many instances the expenses cur- 361 rently so charged are greatly in excels of what is necessary to accom- plish the purposes which, according to a reasonable construction, AYould be chargeable against the Government. Under the circumstances it is desired that each carrier claiming that any such expense should be chargeable against the Government shall present a statement showing the amount of this expense and what amount, if any. it is claimed should fairly be charged to the Government, and the reasons why the carrier believes such expense is so chargeable. And on and after April 1. 1918, the said expense shall cease to be charged against operating income, except in so far as the same shall be expressly authorized after the facts shall have been considered as provided herein. W. G. McAdoo, D'ti-ertor General of Railroads. CiRf i"i-\R No. 11. Washingtox, March 23. 1918. With reference to paragraph 3 of General Order No. 9, carriers? will submit to the regional director a statement marked "Nothing to report'* for each month in Avhich no changes covered by that para- graph occur. With reference to paragraph 4 of General Order No. 9, carriers will submit to the Director General and also to the regional director a statement marked " Nothing to report *' for each month in which no changes covered bv that paragraph occur. W. G. McAdoo, Director General of Bailroads. Circular No. \\L. Washington, March 23, 1918. Unless and except so far as reasonable showing shall be made to the contrary, the Director General will proceed upon the theory that the totals of accounts "cash." "demand loans and deposits," and "time drafts and deposits." appearing on the railroad company's books at the close of business December 31. 1917, was for railroad purposes and is therefore subject to the control and order of the Director General. If. and to the extent that, the Director General shall find it appropriate, in the mobilization and unification of the resources of the railroad companiei^, to transfer any such cash from the control of the officers of the company, full accounting provision will of course be made for the protection of the company's rights. The Director General will entertain any applications which may be made to him to show that any portion of the cash on hand Decem- 362 ber 31 was not for railroad purposes and should not be under the Director GeneraFs control. Carriers subject to Federal control must not make disbursements out of the cash represented by the accounts above designated as of December 31, 1917, except for the following purposes: (a) The payment of interest maturing up to and including July 1, 1918, upon obligations of the' railroad company. (h) The payment of dividends not in excess of regular rate of dividends during the three years ended June 30, 1917, in the regular installments, according to the established practice of the company, payable up to and including July 1, 1918. (c) The payment for materials and supplies for railroad use and for other expenses of operation. Operation to include, both upon the debit and credit side, joint facility rents, car hire, and all items of that character which accrue out of the operation of the property. (d) Taxes, including war taxes. (e) Expenditures for permanent improvements. Application will be entertained for any payments which the car- rier may desire to make out of cash on hand December 31, 1917, for purposes other than those above specified or. as to clauses (a) and (6). at dates beyond July 1, 1918. W. G. MgAdoo, Di reef or General of Railroads. Circular No. 13. Washington, Mareh ^-5, 1918. Will you please give the following information : 1. State the total amount, if any, of Liberty loan 3^'s, and sepa- rately of Liberty loan 4's, bought by your company or subsidiaries (^•) as investment, (6) for employees. 2. State aggregate amount now held of each of said issues (a) as investment, (^) for employees. Of amounts of each issue disposed of by you, other than bonds disposed of to employees, please show (a) amounts sold in the market, or through brokers; (&) amounts sold at private sale to in- vestors; (c) prices realized for each lot sold and dates of sale. W. G. McAdoo, Director General of Railroads. ClRCULAJl No. 14. Washtnoton, March 26. 1918. To all railroad offtc'tah aiul < mployees: A section for the Protection of Railroad Property and property of shippers in transit has been established in the Division of Law by the Director General to enforce rigorously the Federal law against theft from cars, stations, sidings, and wharves, and to take all neces- sary measures in cooperation with carriers to prevent loss from this cause, which in past years has been enormous. Philip J. Doherty is hereby appointed manager of such section. Full cooperation with this section is required from all officers and employees of the railroads, and special agents or secret service men employed by the carriers are especially required to cooperate with this section, both in preventing and investigating thefts, making- arrests, or prosecuting offenders, and railroad attorneys and all other officials are required to give all possible aid. Anyone having knowledge of any such offense should report the same to the nearest railroad official or to this section in order that indictment of the guilty parties may be had under the Federal law which carries a maximum penalty of 10 years' imprisonment. Communications should be addressed to Philip J. Doherty, man- ager, section for Protection of Railroad Property, United States Railroad Administration, Washington, D. C. Officers and employees must understand that all property being- transported by the railroads is in the custody of the United States and they owe an especial duty to guard and protect the same and to report promptly any person who tampers therewith ; and the United States looks to the officers and employees to do their duty in this behalf. W. G. McAdoo, Director General of Railroads. Circular No. 15. Washington, March 29, 1918. The Inspection and Test Section of the Division of Transportation is hereby created and Mr. C. B. Young is appointed manager, with office in the Southern Railway Building, Washington, D. C. The manager of the Inspection and Te^t Section wall have charge of the test and inspection of materials and work in connection with the construction of standard locomotives and cars. W. G. McAdoo, Director General of Railroads. Circular No. 1G. [Corrected.] Washington, April i, 1918. The Car Repair Section of the Division of Transportation is here- by created, and Mr. J. J. Tatum is appointed manager, with office in Southern Railw^ay Building, Washington, D. C. 364 The manager of the Car Repair Section will supervise the con- dition of and repairs to freight and passenger cars in all existing rail- way shops and at ontside points. W. G. McAdoo, Director General of Railroads. CiRCIILAR No. 17. Washixgtox, March JO, 191S. The Director General is of opinion that the Government ought not to pay the salaries and office and traveling expenses of officers whose services are not reasonably required for the operation of the rail- roads. It is, of course, evident that in the past the railroad com- panies, in establishing and maintaining their staffs of officers, have provided not only for the actual necessities of operation but, in addi- tion, have provided {a) for financial and corporate functions beyond what is necessarily connected with operation — for example, functions calling for chairmen of boards of directors and of executive com- mittees, etc.; (/>) for other activities in which the company maj' be lawfully engaged but whose operation is not to be conducted by the Government; {c) for operating functions wliich were naturnl when railroads were operated under the competitive system but which are unnecessary under existing conditions — for example, traffic functioins comiected with the obtaining of traffic rather tlian with the giving of adequate and convenient information and assistance to the public; {d) for officers Avho have practically retired from service and whose salaries have been continued because of their past services rather than because of their need for current operation; {e) for counsel whose services have not been needed for the conduct of ordinary operating activities of the company, but who, to a large extent, if not entirely, have devoted themselves to matters of a corporate character — for example, many of Avhom are now devoting themselves to the problems in connection with the making of the contracts with tlie Government for the use of the railroads. It will be necessary for the Government to make a careful study to determine the extent to which operating expenses under Government control should h^ relieved of charges for the salaries and office and traveling expenses of officers not necessary to carry ou operating fimctions. and this circular is to give notice that this subject is and will be under consideration, and tliat in clear cases the Government may charge back against the company any amounts cliarged into operating expenses on and after April 1. 1918, for the salaries and office and traveling expenses of officers who are not required to con- duct railroad operation. 365 This policy will not affect the positions of any oflficers whom the company itself may desire to continue to pay out of its own funds, but who are not necessary to railroad operations. It is the purpose of the Government to carry out the above pol- icy in a reasonable and considerate way and not to disturb unneces- sarily the operating forces of the railroads. In general, it is antici- pated that the rank and file of railroad officers are needed for the conduct of the company's business and that practically all railroad employees, as distinguished from officers, can be continued in serv- ice even though the offices in which they now work may no longer be continued. It is believed that the readjustment of operating charges above suggested will be called for almost, if not entirely, with reference to general officers of the character illustrated by clauses (a) to (e), whose functions are not necessarily connected with operation. W. G. McAdoo, Director General of Railroads. Circular Xo. 18. Washington, April 2^ 1918. In order to encourage officers and employees to subscribe to the third Liberty loan, carriers may take such amount of the bonds as may be necessary to care for such subscriptions, and current operat- ing revenues may be used as far as necessary in paying for such bonds. Officers and employees may be permitted to pay in install- ments covering a period of not exceeding 10 months. In case they have not completed j^ayments on prior subscriptions, and in order to avoid making payments on both subscriptions at the same time, pay- ments on new subscriptions may begin not later than three months from now, in which event the 10 months shall date from the time payments shall begin on the new subscription. The regional directors have been requested to organize regional committees to promote these subscriptions. In addition it is hoped that the various carriers Avill cooperate heartily with the Federal reserve banks in organizing committees of officers and employees to canvass the matter. W. G. McAdoo, Director General of Railroads. Circular No. 19. Washington, April 3., 1918. Director General McAdoo announced to-day that Angus D. Mc- Donald, vice president and comptroller of the Southern Pacific Co., 366 has been temporarily detailed to Washington as acting treasurer for the United States Railroad Administration. The treasurer will be under the immediate supervision of the director of finance and pur- chases. W. G. McAdoo, Director General of Railroads. Circular No. 20. Washington, April 3, 1918. To all railroad companies: My attention has been called to a report in reference to my General Order No. 8, in which it is stated that many officials of the railroads are filing strong protests with the Director General of Railroads be- cause of the position he has taken in Official Order No. 8. It is only just that I should say that I have not received any pro- tests from railroad officials because of Order No. 8. I feel that it is most important in this new era of " railroading in America" that railroad officials and railroad employees shall not live any longer in an atmosphere of suspicion and distrust. I ear- nestly desire to see them brought together upon a plane of mutual understanding and helpfulness because I believe that it is to the interest of both that this shall be accomplished and because I know that it will promote the efficient and safe operation of the railroads, and, more than all, that it will help the country immeasurably in this time of national peril. In my Order No. 8 I emphasized my desire that the old enemities of the past should be obliterated and that the common peril now confronting America should make friends and comrades of us all. I deeply appreciate the assurances of loyalty and patriotic sup- port I have been receiving from railroad employees connected with all kinds of railroad work since the Government took possession and control of the railroads. With the spirit of high purpose animating us all, from the humblest to the highest, I know that we can do a mighty work for America, and that we can win this war for liberty and democracy. Please bulletin this circular. W. G. McAdoo, Director General of Raih'oods. Circular No. 21. Washington, April 8, 1018. The Director General is giving consideration to the general prac- tice to be followed in the matter of insurance against loss or damage by fire to railroad property and to property in railroad custody. 367 Pending a decision on this question, carriers should not negotiate any contracts of fire insurance covering a longer period than lias heretofore been customary, nor in any event covering a period of more than one year, without special authority from this office. W. G. McAdoo, Director General of Railroads. Circular No. 22. Washington, April Jo\ 1918. To all railroad Gorn/pamAes : In conformity with General Order No. 13, Railway Board of Adjustment No. 1 met in the city of Washington at its office, room 733, Southern Railway Building, Washington, D. C, and have or- ganized and are ready for the transaction of such business as may come before it as provided in General Order No. 13. The officers and members of this board are as follows: Charles P. Neill (chairman), L. E. Sheppard (vice chairman), F. A. Burgess, W. N. Doak, J. W. Higgins, Albert Phillips, John G. Walber, E. T. Whiter. The board has designated the following dates as the beginning of each of its regular monthly meetings during the remaining portion of the year 1918: May 7. June 4, July 8, August G, September 3, October 8, No\'ember 7, December 3. Attention is called to the provisions of the memorandum of under- standing annexed to General Order No. 13, as follows : Article 10 provides the manner in which controversies will be sub- mitted to the board through the Division of Labor of the United States Railroad Administration. Every case submitted, except the unfinished business of the commission of eight, which is transferred to this board as provided in article 6, should be accompanied by evidence that its submission is approved by the chief operating officer of the railroad upon which the controversy has arisen, and by the chief executive officer of the organization concerned. Where two or more organizations are jointly concerned, the submission should be joint, if practicable. Article 11 expressly precludes a consideration by the Railway Board of Adjustment No. 1 of any matter unless officially referred to it in the manner prescribed in the memorandum of understanding. Article 14 requires that in each case an effort should be made to present a joint concrete statement of facts as to any controversy. Statement of fact, whether joint or separate, should be sufficiently comprehensive to give an understanding of the controversy that the 368 board is called upon to decide. Where briefs or additional evidence are to follow, notice thereof should accompany the submission. Where additional matter is to follow the submission, the cas^ will not be transmitted to the Board of Adjustment by the Division of Labor until the additional data shall have been received. It is requested that three copies of the joint concrete statement be filed with the Division of Labor for matter of record and for the information of the board. Briefs and documentary evidence need not be furnished in duplicate, but whenever possible should be at- tached to the three copies of the joint statement. W. G. McAdoo, Director General of Railroads. Circular No. 23. Washington, April IS, 1918. 1. For the administration of the coastwise steampship lines, under control of the United States Railroad Administration, the Coast- wise Steamship Advisory Committee is hereby created, with office at 165 Broadway, New York City. 2. Mr. L. J. Spence is appointed chainnan, with authority to form the Coastwise Steamship Advisory Committee from the officers of the following steamship lines : Clyde Steamship Co., Mallory Steam- ship Co., Merchants & Miners' Transportation Co., Ocean Steamship Co., Old Dominion Steamship Co., Southern Pacific Steamship Lines, Southern Steamship Co. 3. The chairman of the Coastwise Steamship Advisory Commit- tee will report to the manager. Marine Section, of the Division of Transportation, and will exercise supervision and direction of all coastwise lines under control of the United States Railroad Admin- istration. W. G. McAdoo, Director General of Railroads. CiRCULAK No. 24. Washington, ApHl 22, 1918. Shortly after possession and control of the railroads of the United States were assumed by the Government, I appointed a Railroad Wage Commission for the purpose of making a thorough investiga- tion of the wages paid to all railroad employees, whether members of labor organizations or not. I announced that if, as a result of that investigation, an increase of wages was made by the Director Gen- eral, such increase would become eifective us of January 1, 1918. 369 The task confronting the Raih-oad Wage Commission was greater in magnitude than any task of a similar character ever undertaken. The commission immediately applied itself to the work with great energy and Avith unremitting labor to a study of the large and com- plex questions involved. In matters of such magTiitiide adequate time is essential to intelligent consideration and wise conclusions. The connnission has informed me that it expects to submit its re- port on my return to Washington upon the conclusion of the present Liberty loan campaign. May 4. I shall promptly review the report of the commission and render a decision upon its findings and recom- mendations. Meanwhile, no employee's interest is being hurt or prejudiced, becau^e whateA-er increases may be granted will have accumulated in the form of savings and will not have been spent in the meantime as might otherwise have been the case. I hope that every railroad employee in the United States will lend all the money he can, consistently with his individual circumstances, to his Government by buying Liberty bonds; they pay 4^ per cent interest per annum and are the safest investinent in the world — as safe as the money of the United States and safer than deposits in banks. In lending your money to the Government you not only save the money for yourselves, but you help every. gallant American sol- dier and sailor wlio is fighting in this war now to save your lives and libeities and to make the world safe for democracy. W. G. McAdoo, WiiU'Ctoi' (Teneral of Railroads. C1RCUL-A.K No. 25. Washington, May 8, 191S. Each carrier shall at once make a report in duplicate, sending one original to the director of the Division of Capital Expenditures and the other original to the regional director, giving full advice as to Avhether the carrier is proceeding Avith all practicable expedition to construct and put into operation all additions and betterments on its lines which may have been approved by the director of the Division of Capital Expenditures, and all equipment which may have been so approved and Avhich the carrier may be constructing in its own sliops. If a carrier shall not haA^e commenced any project so approved, or, having commenced it, shall not be prosecuting it vigorously to completion, the carrier shall specify in the above-mentioned report each such project and state fully the reasons why it has not been commenced or why. if commenced, it is not being vigorously prose- cuted to completion. 105889°— 19 24 370 If a carrier shall not haAe, on hand or arranged for, the necessary funds to construct and put into operation without delay all the additions and betterments which have been so approved, and if it anticipates that this condition is likely to delay any of such work, the carrier shall in addition make a report at once to the director of the Division of Finance, stating its financial needs in order to enable it to complete all such work expeditiously. W. G. McAdoo, Director General of Railroads. Circular No. 26. Washington, D. C, May 20, 1918. Walker D. Hines, heretofore assistant to the Director General, is hereby appointed Assistant Director General of Railroads, effective this date. W. G. McAdoo, Director General of Railroads. Circular No. 27. Washington, May £o, 191S. Effective June 1, 1918, Mr. Theodore H. Price is appointed actuary of the United States Railroad Administration. His duties will be to compile and analyze statistics and make reports concerning the vari- ous economic problems, connected with the functions of the Railroad Administration, which will be referred to him by the Director Gen- eral or by members of the staff. W. G. McAdoo, Director General of Railroads. Circular No. 28. Washington, D. C, June 1, 1918. Effective this date, the Allegheny Region is hereby created, and Mr. Charles H. Markham is appointed regional director, with office in Broad Street Station, Philadelphia. The Allegheny Region will comprise the following lines, which are, for the purpose, released from the eastern region : Atlantic City Rail- road; Baltimore & Ohio Railroad (east of and including Parkersburg and Pittsburgh) ; Be&semer & Lake Erie Railroad; Central Railroad of Xew Jersey: Cumberland Valley Railroad; Coal & Coke Railway; Hudson & Manhattan Railroad; New York, Philadelphia & Norfolk 371 Railroad; Pennsylvania Railroad (east of Erie and PittsSburgh, in- cluding terminals at Pittsburgh) ; Philadelphia & Reading Railway; Pittsburgh & Lake Erie Railroad; West Jersey & Seashore Railroad : Western Maryland Railway. W. G. McAdoo, Director General of Railroads. Supplement No. 1 to Circular Xo. "28. Washington, Jidy 10, 191S. In addition to the railroads named in Circular No. 28, the follo^v ing railroads are included in the Allegheny Region : Buffalo & Susquehanna Railroad Corporation. Cherry Tree 8c Dixonville Railroad. Cumberland & Pennsylvania Railroad. Huntingdon & Broad Top Mountain Railroad. Long Island Railroad. Monongahela Railway. Philadelphia Belt Line. Pittsbui-g, Chartiers & Youghiogheny Railroad. Staten Island Rapid Transit Railway. Union Railroad (Pennsylvania). Washington Terminal Railroad. W. G. McAdoo, Director General of Railroads. Circular No. 29. Washington, D. C, June i, 1918. Effective this date, Mr. B. L. Winchell is hereby appointed regional director, Southern Region, with office in Healey Building, Atlanta, Ga., succeeding Mr. C. H. Markham, who becomes regional director of the Alleghenv Region. W. G. McAdoo, Director General of Railroads. Circular No. 30. Washington, D. C, June 1, 1918. Effective this date, the Pocahontas Region is hereby created, and Mr. N. D. Maher is appointed regional director, with office in Roa- noke, Va. The Pocahontas Region will comprise the following lines, which are, for the purpose, released from the Eastern Region : Chesapeake 372 & Ohio Railway, east of Louisville, Ky. ; Columbus and Cincinnati, Ohio, including the Chesapeake & Ohio Northern; Norfolk & Western Eaihvay; Virginian Railway. Tlie terminals of all railroads at Norfolk, Portsmouth, and New^- port News, Va., and the Norfolk & Portsmouth Belt Railways are assigned to the Pocahontas Region. W. G. McAdoo, Director Geiwral. of Railroads. Supplement No. 1 to Circular No. 30. Washington, July 10, WIS. In addition to the railroads named in Circular No. 30, the follow- ing railroad is included in the Pocahontas Region: Ashland Coal & Iron Railway. W. G. McAdoo, Director General of Railroads. Circular No. 31. Washington, June 1, 1918. To all railroads and railroad employ-ces : In conformity with Ai'ticle VII of General Order No. 27, the Board of Railroad Wages and Working Conditions have organized and are ready for the transaction of such business as may properly come before it. The officers and members of this board are as follows : G. H. Sines, chairman, F. F. Gaines, vice chairman, J, J. Dermody, C. E. Lindsay, W. E. Morse, A. O. Wharton. The offices of the Board of Railroad Wages and Working Condi- tions are on the fourth floor. Premier Apartment Building, No. 718 Eighteenth Street Northwest, near Pennsylvania Avenue, AVashing- ton, D. C. It shall be the duty of the board to hear and investigate matters presented by railroad employees or their representatives affecting, (1) Inequalities as to wages and working conditions, whether as to individual employees or classes of employees. (2) Conditions arising from competition with employees in other industries. (3) Rules and working conditions for the several classes of ou- ployees, either for the country as a whole or for different parts of the country. The board shall also hear and investigate other matters affecting wages and conditions of employment referred to it by the Director General. 373 This board shall be solely a)i advisoi y body and shall submit it' lecommendations to tlie Director General for his detennination. W. G. McAdoo, l>'n■^ ake Superior Terminal & Transfer Ry. Co. Mineral Range R. R. Minneapolis Belt Line Co. Minneapolis & Eastern Ry . Minnesota Transfer Ry. Ontonagon R. R. Oregon Electric Ry. Pacific Coast R. R. Port Townsend & Puget Sound Ry. St. Charles Air Line. St. Paul Bridge & Terminal Ry. St. Paul Union Depot Co. Sioux City Terminal Ry . South Chicago & Southern R. R. Stock Yards Terminal Ry. Co. of St. I'avl. Union Stock Yards Co. of Omaha. Waterloo, Cedar Falls & Northern Ry. Waupaca-Green Bay Ry. W. G. McAdoo, Director General of Railroads. Circular No. 34, Washington, June 11, 1918. Effective this date, the Central Western Region is hereby created, and Mr. Hale Holden is appointed regional director, with office in Chicago, 111. The Central Western Region will comprise the following lines: Atchison, Topfeka & Santa Fe Railway; Chicago, Rock Island & Pacific Railway (except St. Lonis to Kansas City ; lines east of El Reno ; lines El Reno to Memphis and branches, and south of Chick- asha) ; Chicago, Peoria & St. Louis Railroad; Chicago & Alton Rail- road ; Chicago & Eastern Illinois Railroad ; Chicago, Terre Haute & Southeastern Railway; Chicago, Burlington & Quincy Railroad; Colorado & Southern Railway ; Denver & Rio Grande Railroad ; El Paso & Southwestern System; Illinois Central Railroad (north of Cairo and Paducah) : Los Angeles & Salt Lake Railroad ; Northwest- ern Pacific Railroad ; Oregon Short Line Railroad ; Quincy, Omaha & Kansas City Railroad Southern Pacific Lines (west of El Paso and Ogden, except north of Ashland, Oreg.) ; St. Joseph & Grand Island Railway: Union Pacific Railroad; Western Pacific Railroad. W. G. McAdoo, Director General of Railroads. Stjpplement No. 1 to Circular No. 34. Washington, July 10, 191S. In addition to the railroads named in Circular No. 34, the follow- ing railroads are included in the Central Western Region: Arizona Eastern R. R. Co. Atchison &. Eastern liridge Co. Atchison L^nion Depot &. R. R. Co. Colorado Springs & Cripple Creek Dis- trict Ry. Denver Union Terminal Ry. 375 Evansville & Indianapolis R. R. Kansas City Connecting R. R. Keokuk Union Depot Co. Leavenworth Depot & R. R. Co. Ogden Union Railway & Depot Co. Pan Handle & Santa Fe Ry. Peoria & Pekin Union Ry. Pueblo Union Depot & R. R. Co. Riverside, Rial to & Pacific R\-. Salt Lake City Union Depot & R. R. Cu. Toledo, Peoria & Western Ry. Wichita Union Terminal Ry. The following railway is transferred from the Southwestern Region to the Central Western Region: Wabash Railway (Lines West of the Mississippi River). W. G. McAdoo, Director General of Railroads. Circular No. 35. Washington, Jwne 11, 1918. Effective this date, the Southwestern Region is hereby created, and Mr. B. F. Bush is appointed regional director, with office in St. Louis, Mo. The Southwestern Region will comprise the following- lines: Fort Worth & Denver City Railway; Fort Worth & Rio Grande Railway; Gulf, Colorado & Santa Fe Railway; Gulf Coast Lines; Galveston, Harrisburg & San Antonio Railway; Houston & Texas Central Railroad; Houston, East & West Texas Railway; In- ternational & Great Northern Railroad ; Kansas City Southern Rail- waj'; Louisiana & Arkansas Railway; Louisiana Railway & Navi- gation; Louisiana Western Railroad; Midland Valley Railroad; Mis- souri Pacific Railway System; Missouri, Kansas & Texas Lines; Mor- gan's Louisiana & Texas Railroad & Steamship; Rock Island Lines (south of Chickasha, El Reno to Memphis and branches, and St. Louis to Kansas City) ; St. Louis-San Francisco Railroad; St. Louis Southwestern Railway ; San x^ntonio & Aransas Pass Railway ; Texas & Pacific Railway; Texas & New Orleans Railroad; Wabash Rail- road (St. Louis to Kansas City and Omaha) ; Wichita Falls & North- western Railway; Texas Midland Railroad; Wichita Valley Railway. W. G. McAdoo, Director General of Railroads. Supplement No. 1 to Cikcular No. 35. Washington, July 10, 1918. In addition to the railroads named in Circular No. 35, the follow- ing railroads are included in the Southwestern Region: Abilene & Southern Ry. Fort Worth Union Passenger Station Co. Alton & Southern Ry. Galveston, Houston & Henderson R. R. East St. Louis National Stock Yards Co. Houston Belt & Terminal Ry. East St. Louis & Suburban Ry. Houston & Brazos Valley Ry. Fort Worth Belt R. R. Illinois Terminal R. R. 376 Joplin Union Depot Co. Kansas City, Mexico & Orient Tines. Litchfield & Madison Ry. Missouri & Illinois Bridge & Belt Ry. Oklahoma Belt Ry. St. Joseph Belt Ry. St. Joseph Union Depot Co. St. Louis & Belleville Electric Ry. St. Louis Merchants Bridge Terminal Ry. St. Louis National Stock Yard Co. St. Louis & O'Fallon Rv. St. Louis, Troy & Easton R. R. San Antonio, Uvalde & Gulf R. R. Southern Illinois & Missouri Bridge Co. Terminal Railroad Association of St. Louis. Texas Midland R. R. Trans-Mississippi Terminal R. R. Union Terminal Co. of Dallas. Vicksburg, Shreveport & Pacific Ry. West Tulsa Belt Ry. Wiggins Ferry Co. The following railway is transferred from the Central Western Region to the Southwestern Region: Chicago, Rock Island & Pacific Railway (Tucumcari, X. M., to El Reno, Okla.; south of Harrington, Kansas, to Chick- asha, Okla., including branches). W. G. McAdoo, Director General of BailrociS. Circular No. 36. AVashington, D. C, June 12, 191 S. I am deeply gratified to learn of the large number of railroad em- ployees who have subscribed for the third issue of Liberty bonds, i'.nd I desire to express my appreciation of the patriotism and loyalty they have exhibited in this time of national peril. A large number of railroad employees will receive substantial amounts of back payments resulting from the increase of wages au- thorized by General Order No. 27. These payments will be made to employees by the respective railroads as promptly as the amounts for each of the months from January to June can be computed. I earnestly urge upon every railroad employee who has thus se- cured increases in pay for the future and who will receive back pay- ments from January 1, 1918, to invest as much as he possibly can in the war savings stamps issued by the United States Treasuiy. These war savings stamps are not only an investment of the safest and best quality, but they accnie interest at the rate of 4 per cent per annum, compounded quarterly. Every man Avho invests in war savings stamps can get his money back in full from the Goveniment at any time upon 10 days' notice, and with interest at a rate somewliat less than 4 per cent, if he recjuests payment before the maturity of the stamps. If he keeps the stamps until maturity — namely, until the 1st of January, 1923, he will receive his money back in full with inter- est added at the rate of 4 per cent per annum, compounded quarterly. Our heroic boys are now actually fighting in the battles which are raging along the western front in France. They are dying for us, 377 irivinir their lives freely and heroically that the liberties of mankind shall be preserved. Every man who buys war savings stamps is help- ing these boys because he is helping to keep his (Tovernment provided Avith the money Avhich it must have to enable those boys to fight vic- toriously or to die gloriously. I hope every railroad employee who can do so will invest to the limit of his means and ability in these war savings stamps of the United States Government. W. G. McAdoo, Director General of Railroads. CiRCITLAR Xo. 37. Washington, June 12^ 191S. Effective June 1. 1918, Oscar A. Price, heretofore private secretary to the Director General, is hereby appointed assistant to the Director General of Railroads. W. G. McAdoo, Director General of Railroads. CiRCULAB Xo. 38. AVashixgton. D. C'.. -hiii, 21, 191S. To all railroad companies : In conformity with General Order Xo, -liK Eaihvay Board of Ad- justment Xo. -1 met in the city of Washington at its office, Room 702, Southern Railway Building. Washington, D. C. and have organized and are ready for the transaction of such business as may come before it as provided in General Order Xo. 29. The officers and members of this board as as follows: E. F. Potter, chairman. W. S. Murrian. F. J. McXulty. vice chair- W. H. Penrith, man. Geo. W. Pring. A. C. Adams. E. A. Sweeley. H. J. Garr. R. J. Turnbull. Otto E. Hoard. G. C. Van Domes. F, H. Knight. The board has designated the following date.s as the beginning of each of its regular monthly ineetings during the remaining portion of the year 1918 : July 2. September 3. November 5. August 6. October 1. Decembers. Attention is called to the provisions of the memorandum of under- standing annexed to General Order Xo. 29, as follows: Article 10 provides the manner in which controversies will be sub- mitted to the board throustantial increases in wages, and therefore it is unnecessary to avoid the making of payments on two subscriptions at the same time. Payments on subscriptions to the Fourth Liberty Loan may, however, wlion the subscriber is also making payments on subscriptions to the Thii'd Liberty Loan, commence mth the month of January, 1919, the period of eight months running therefrom. In cases where employees are not making payments on subscriptions to Third Liberty Loan bonds, payments shall begin \\\\h. the pay roll for the last half of October, 1918. Employees ^vill be credited with interest on bonds during the period of installment payments and will be charged interest on deferred payment both at 4^ per cent. When the laj^t installment payment is made, the bond will be delivered to the sub- scriber. Adjustment of interest will be made in the last month's installment pay- 398 ment. Coupon (covering intere^'t which matures during the period of installment pajments) will be detached by the Federal Treasurer and the interest collected. Subscribers wUl, however, receive proper proportionate credit on account of such coupons in the adjustment of interest to be made in the last installment payment, as described above. Should employees leave the ser\ice before completion of the payments, the amount paid \vill be refunded ^vithout interest. Employees may pay for bonds in full at the time of subscription; or, if they subscribe on the installment plan, they may at any time pay up the unpaid installments in full and receive the bonds. Employees should not hesitate to place their subscription with the F'ederal treas- urer of the road on which they are employed for fear that their local district may not receive credit for subscriptions, for aiTangements are being made so that the sub- scriptions of railroad employees will be reported according to tlieii" homes, and the local district mtII in each case receive corresponding credit to apply toward its quota. Instructions are being issued to regional directors relative to the formation of com- mittees, etc., to organize and promote this work, with which committee when ap- pointed all railroad employees are mged to cooperate. While bonds are being issued in both coupon and registered form, I ad\dse and m-ge that employees subscribe for registered bonds, which in case of loss or destruction by fire will be replaced by the United States Treasury. Circular No. 57. Washington, D. C, September 18, 1918. To the Regional Directors: I attach statement issued by the Provost Marshal General on September 9 to employers and other representatives of industry urg- ing then- cooperation in the classification of the new registrants under the selective-service act. In addition to the instructions already issued, on and after September 9, with a view to such coop- eration, you are hereb}- mstructed to see that the railroad officers shall, in presentmg or supporting claims for deferred classification before district boards, present the following to such boards as a statement of the policy of the United States Radroad Administration and of the general reasons in support of the claims made for deferred classifica- tion : ..;U1 apphcations made by ofiicei-s of railroads under Federal control for deferred classification for railroad officers and employees and aU affidavits made by railroad officers in support of claims for such de- ferred classification are made by them as officers of the United States Railroad Administration and by my authority and in pursuance of a general poHcy which m my judgment must be adopted in order to meet the war responsibilities wliich rest upon the railroads mider Federal control. The Government of the United States has taken possession and con- trol of the railroads as a war measure, and their efficient and unham- pered operation is indispensable to the successful conduct of the war. 394 The essential character of the raihoad industry as a war enterprise is not open to dispute. Indeed, in contrast with nearly all war indus- tries, the railroad industry is one of the very few which has actually become a Government enterprise because of its essential character for war purposes. In such circumstances the men who are necessarily employed in raU transportation in this coimtry are as truly employed in an indis- pensable war service as are our soldiers and sailors. Since the raih'oads are indispensable and the branches of the service to which the employees belong are indispensable, I understand the remaining questions for consideration by the district board are whether a particular employee can be dispensed with (1) on the ground that the raUroad has more of such employees than it needs, or (2) upon the ground that it can readily replace such employees with others. Please state to the district board, with my fuH authority, that after eight and a half months of a thorough and continuing study of this subject, being constantly in touch with employers of raihoad labor, the representatives of the railroad employees, and the representatives of the labor situation generally for the whole country, there is no sur- plus whatever of employees for running the railroads, and there is no surplus supply of labor from which new employees can be drawn to replace those who may be taken for military service. Any competent railroad employee taken from an indispensable branch of the raih^oad service wiU be subtracted from a force which is already too small and which can not be adequately replenished. The takmg of any such employee by any district board would be a step tendmg to injure the war operations of some railroads. The taking of such steps by nu- merous district boards would in the aggregate constitute a cimiulative and far-reaching injury to the United States Kailroad Administration and would destroy the purpose for which the Government took pos- session of such control of the railroads. The scarcity of skilled railroad employees is in part due to the fact that up to the present time the railroads of the country, in addition to meetmg their full share of the demands of men for general military service, have been subjected to the peculiar disability that they alone, out of all the industries of the country, have had to furnish large num- bei-s of men for special military service. Hundreds of miles of mili- tary railroads in France are being operated for the military forces of the United States who have been drawn from the ranks of the skilled officers and employees of railroads in this country. In this way the drain upon skilled railroad labor has already been proportionately greater than the drain upon skilled labor of other industries, and this in part accounts for the exceptional shortage of skilled raOroad labor which confronts the United States Railroad Administration. 395 It must also be clear that employees in these classes can not be sup- phed by the emplo}Tnent and training of new employees. Practically without exception these employments are not suited to women, but able-bodied and vigorous men are needed for the discharge of the duties. These men are not available in adequate numbers and will become less and less available as the war progresses. Besides, un- trained men can not perform the functions, and if skilled railroad employees are taken for mihtary service the substitution of untrained employees, even if available, would prove destructive to efficient railroad operation. It is desired that the understandmg and sympathetic cooperation of the district boards shall be sought m all instances. We are all striving for the same end, and that is to win the war. To the extent that railroad men can be spared from railroad service for mihtary service we ought to spare them. But to the extent that they are needed for railroad service the district boards should not attempt to take them for mihtary service. The United States Railroad Administration intends to ask for de- ferred classification only when the men on whose behalf the request is made are needed in the pubHc interest for the contmued perform- ance of theu' duties and when experience^ substitutes can not be found. And the district boards, upon whom rests the responsibdity for preservuig the necessary labor supply for essential occupations, should be urged to grant, in the interest of the national needs ami with a nation-wide view of the controlling factors, the apphcations for deferred classification which are supported by the United States Railroad Admmistration. Instructions have been issued through the regional directors to aU officials of raihoads under Federal control to see that proper apphca- tions are made for deferred classification for all necessary radroad em- ployees and to support such apphcations vigorously, and at the same time to avoid making apphcations wherever reasonably practicable. It is the patriotic duty of the men who are considered necessary for the operation of the radroads to claim deferred classification and to furnish the district boards with the necessary information in their answei-s to questionnaires to show the basis for such classification. Every man who is helping in these necessary occupations to operate the radroads in this comitry is rendering not only a service indispen- sable to the war but a service that is as praiseworthy and creditable as any war service could be. W. G. McAdoo, Director General of Railroads. 396 War Department, Office of the Provost ^[arshal General, Wa^hiiKiton. Scptcmhrr 9, 1918. To Employers aiul Other Representatives of Inilustrij: The time has come when I must address to you some recommendations as to your ehai'e of responsibility in the classification of the new registrants under the selective- service act. I have noticed in the general expressions of the public attitude which reach this office two frequent featm'es which lead me to the present comments. One of these featm'es is the belief that the process of awarding deferred classification to a registrant requires merely the filling out of the Questionnaire and that the selective- service boards \n\\ perceive the propriety of making the deferment vathout the assistance furnished by the registrant's formal claim indicating the deferment desired. The other feature is the employer's failure to realize his responsibility to intervene in aiding the boai'd's determination and therefore to inform himself fully on all the considerations which should affect the decision as to deferment. Both of these features are due to a single larger fact, viz, a failm'e on the part of many to reflect on the industrial considerations governing deferred classification. 1. As to the first-mentioned belief, it must be pointed out that if it were universally acted upon, the process of classification would be seriously hampered and delayed. Some one raust indicate that the individual case is one which should arrest the special attention of the boards in respect to the registrant's occupational status. The boards do not possess a superhuman omniscience. Nor are they permitted by circumstances to devote unlimited time to the search of Questionnaii'es for possible grounds of claim. In 1917, out of more than 3,000,000 registrants called, only 140,000 filed occupational claims, or 4.7 per cent; thus 95 per cent of all registrants raised no question of such deferment. Under the Questioiinaii-e system the exact scrutiny of every page of this 95 per cent of Questionnaires presenting no occupational claims would have been an intolerable expenditure of time, involving a delay fatal to the speed and decisive action necessaiy for filling the jVi'niy. The boards will do all that they possiblj^ can on then- own initiative to reach a just decision by a complete examination of the Questionnaii-e, even where no claim is expressly made, following in this respect the spirit of the Secretary of War's statement made before the House Committee on Militaiy Affairs on August 19 last: "It is not easily possible — it is, perhaps, not possible at all — to do that without some aids fi'om the men affected; but aa far as it is possible, we ought to have the facts developed by the answers to the questions which the man makes and call on him for as little aid as we can in determining whether or not he is to be exempted." A registrant is therefore at liberty, if he sees fit, to trust to the scrutiny of the boards to discover the necessity for his deferment. Nevertheless the boards will welcome and will need all the aid that can be furnished by the indication of a claim made for deferment. With this aid the process A^-ill become a simple and speedy one. Time and labor will not be wasted on needless search, and ample time will be gained for thorough attention to those cases explicitly raising a question of occupational deferment. But who is to make that claim? Ordinarily, the regif^trant himself will indicate the claim on his Questionnaire. But if, through mistaken chivahy, he should fail to do so, another may make it for him. In industry, agriculture, or other occupations, this other person will naturally be his employer or some other representative of his associated group. And this brings me to the second feature above mentioned. 2. "WTiy should the employer, or other third person in such cases, make the claim? Because the employer in this situation represents the Nation — becau.se, in the statu- tory phrase, "the maintenance of the ^tilitary Establishment or of national interest dining the emergency" requires that some well-advised third person should look after that national interest, which the registrant him,>*elf may not ha\e sufficiently considered. 397 It is at this point that I wish to address to employers, and other representatives, the suggestion that they charge themselves, more systematically than hitherto, with this responsibility. I have above referred to such third persons as '"well advised," and this is the place to emphasize to employers the importance of making themselves well advised for the execution of this duty. How many employers, having charge of some industrial or other occupational gioup, have hitherto taken pains to inform themselves systematically which of their employees are registrants and which are not? How many have studied carefully the required conditions for occupational deferment as laid down in the President's regu- lations piu*suant to the statute? How many have made it a point to sinvey theii- entire plant so as to single out the really indispensable individuals? With the oncom- ing of a more extensive registration an even larger outlook is necessary. The general industrial conditions, the supply of skilled men in the industry at large, the possi- bilities of training substitutes, the availability of women workers — these are some of the considerations which bear directly on the need of occupational deferment as related to the need of the Army. Moreover, it is often forgotten that the selective draft is only one element in the depletion of a particular industry's man power. A second and large element is found in the voluntaiy withdrawals for enlistment; how large this is may be seen from the circumstance that the total inductions by draft have reached some 2,000,000, while the total enlistments in Army and Navy amount to some 1,400,000 — nearly three- quarters as many. A third element, very large, but unknown as to its precise extent, has been the transfer of labor power from one industry to another, i. e., into the dis- tinctly war industries offering the inducement of higher wages. How relatively small, in actual effect, has been the effect of the selective draft is seen in the fact that, for all the occupations represented in the 8,700,000 classified registrants of January, 1918, the percentage of the entire industrial population represented by the Class I registrants amounted to only 6 per cent. It ran as low as 3 per cent for some occu- pations, and correspondingly higher for some other occupations; but the national average was only 6 per cent. Any notably larger depletions in particular industries must therefore have been due, partly to enlistments, and in probably greater degi-ee, to voluntary transfers into other industries. These other influences are therefore to be kept in mind by employers and others in weighing the question whether the best solution, in the national interest, is to ask for the deferment of individuals or groups of men. Such deferments may assist the immediate situation in the pai'ticular establishment, but they merely force the .\rmy and the Navy to seek elsewhere for the same number of men thus deferred. The quantitative needs of the military forces are known and imperative, and any given quantity of deferments will ultimately have to be made up by the depletion of some other occupation. Thus, it becomes the employer's duty to consider these largest aspects of deferment in seeking that solution of his own problem which best compoi-ts with the national interest. My present object is to lu-ge upon employers the duty and responsibility of becoming well advised in all these matters, of equipping themselves ^vith full information as to the extent to which their particular establishment is affected by the liability of registrants to military ser\ice, of observing the extent to which other influences of depletion have affected it and the degree in which other methods of supply can relieve that depletion, and of laying these facts and other pertinent ones before the industrial advisers now to be placed at each district board, to the end that those indi\dduals or groups who are indispensable and irreplaceable should receive defer- ment, whether or not they have made claim for it, and that the Army and the Navy should not be deprived of its proper supply of man power by ill-considered deferments not absolutely demanded by the national interest. The cessation of enlistments will henceforth protect industry against one iiTeguIar and uncontrollable source of derangement. It will correspondingly throw upon the eelective-draft system the greater responsibility for an intelligent and discriminating selection made in the light of industrial needs. But this responsibility if shared by employers and all who represent groups of workers. To fulfill this responsibility they must now prepare themselves even more carefully than hitherto. They will find the boards heartily ready to cooperate with them to the utmost. The keynote of purpose for all of us ought to be, and I am sure will be, that wise and profoundly significant phrase in the act of Congress under which we operate, "the maintenance of the Military Establishment or the effective operation of the military forces, or the maintenance of national interest during the emergency." Circular No. 58. Washington, D. C, September 25, WIS. The Committee on Health and Medical Rehef for the United States Railroad Administration is hereby appointed, consisting of the fol- lowing : Dr. D. Z. Dunott, Chairman, Dr. G. W. Cale, Jr., Dr. Victor G. Heiser, Dr. T. R. Crowder, Dr. H. M. Bracken. The committee will establish an office in Washington and wOl conduct a survey of, and submit recommendations in connection with, the proper protection of the health of employees and patrons of the raUroads under Federal control. W. G. McAdoo, Director General of Railroads. Circular No. 59. Washington, September 30, 191S. All banks and trust companies in which funds of the U. S. Railroad Administration or of the various Federal Treasurers are deposited will be notified that in future they will be required to pay interest at the following rates : On deposits payable by check on demand 2% per annum. On time deposits payable after thirty days from date or after thirty days' notice 3% per annum. These rates will apply to all railroad deposits in all banks except in special cases where, because of the smallness of the account or the particularly fluctuating character of the balance, it may be considered proper not to require the payment of interest. An investigation recently made shows that the rates of interest allowed by banks which pay interest on railroad deposits has ranged 399 all the way from 2% to 5% per annum, and the higher rates paid have been used by some banks as an excuse for excessive rates charged to customers. The Director General expects banks designated as railroad deposi- taries to observe faithfully the interest laws of their respective States and not to charge rates of interest in excess of those permitted by law. It is of great importance to the pubHc welfare, to the financing of the war, and to the commerce of the Nation that interest rates throughout the Country shall be kept at a moderate level or within a reasonable range. W. G. McAuoo, Director General of Railroads. Circular No. 60. Washington, Octoher 22^ 1018. Effective October 8, 1918, the Marine Insurance Section has been established in the Division of Finance and Purchases and Mr. William C. DeLanoy appointed Manager thereof with office in Washington, D. C. In supervising this Section Mr. John Skelton Williams, the Director of the Division, will be assisted by Mr. Theodore H. Price, Actuary of the Railroad Administration. The Marine Insurance Section will be charged with the duty of providing for such insurance as the Director General may desire against marine and war risks on vessels and floating equipment under the control of the United States Railroad Administration, and on the contents of such vessels and floating equipment, and with adjustment of marine insurance losses, and shall perform such other duties as may be assigned to it by the Director General as to insurable risks connected with the operation of such vessels and floating equip- ment. W. G. McAdoo, Director General of RailrooAU. CiRCULu^R No. 61. Washington, Octoher 2-J, 1918. To relieve the railroad telephone and telegraph facilities from unnecessary business the following rules are issued : 1. Use the telegraph and telephone only when the mail will not answer the purpose. 2. Send by mail messages written late in the day, on Saturday afternoons, Sundays or holidays which can not be acted upon at once and which will reach their destination by mail in ample time for action. 400 3. Omit superfluous words; avoid unnecessary file numbers and references— BE BRIEF. 4. Use telegraph code systems where it will effect a saving. 5. Limit the use of telephone facilities, both railroad and com- mercial, to railroad business and to the shortest time practicable. 6. The Telegraph Section, Division of Operation, will establish an effective system of censoring with a view of reducing the number and length of telegraphic communications. AV. G. McAdoo, Director General of Railroculs. Circular Xo. 62. Washington, November 1, 1918. Effective this date, Mr. Charles A. Lutz is appointed Treasurer of the United States Railroad Administration * vice Mr. L. G. Scott (Comptroller of the Wabash Railway Company), Acting Treasurer, resigned. W. G. MgAdoo, Director General of Raxlroadn. Circular Xo. 03. Washington, November 5, 1018. The war has caused a large increase in the volume and the variety of dangerous articles that must be moved over the railroads in the interests of the national defense, and the frequent necessity for the greatest possible expedition in these movements requires expert atten- tion so as to minimize the danger to life and property incident to this traffic. The Bureau for the Safe Transportation of Explosives and other Dangerous Articles is a recognized agency of the United States . Railroad Administration, and the instructions issued by this Bureau are with the approval of the Director General. Operating railroad officials must take prompt and adequate action to remedy any con- ditions on their lines that are not in accord with the requirements of the Federal regulations as shown by the reports of the inspectors of the Bureau. W. G. McAdoo, Director General of Railroads. 401 ClKCUI.AK No. 64. Washington, Novemher 22, 1918. A practice has grown up by which officers and employees of rail- roads have been given Christmas and other holiday presents by shippers, and by business houses who furnish supplies and materials to railroads. AVhilc in many instances these presents do not represent material value, yet the practice is essentially objectionable, and it is the policy of the Railroad Administration that it should be discontinued entirelv. W. G. McAdoo, Director GeTieral of Railroads. Circular No. 65. Washington, Xoi-rmher 22 , 1918. To All Railroad Companies: In conformity with General Order No. 53, Railway Board of Ad- justment No. 3 met in the City of Washington at its office, Room 70-2-A. Southern Railway Building, Washington, D. C, and have organized and are ready for the transaction of such business as may come before it as provided in General Order No. 53. The officers and members of this Board are as follows: H. A. Kennedy. Chairman. S. N. Harrison. T. H. Gerrey, Vice Chairman. F. Hartenstein. Richard P. Dee. G. E. Kipp. E. A. Gould. W. A. Titus. The Board has designated the following dates as the beginning of each of its regular monthly meetings during the remaining por- tion of the year 1918 and for the year 1919: December 11, 1918. June 4, 1919. January 8, 1919. July 9, 1919. February 5, 1919. August 6, 1919. March 5, 1919. September 4, 1919. April 2, 1919. October 1, 1919. May 7, 1919. November 5, 1919. Attention is called to the provisions of the memorandum of under- standing annexed to General Order No. 53, as follows: Article 10 provides the n)anner in which controversies will be submitted to the Board through the Division of Labor of the United States Railroad Administration. Every case submitted should be accompanied by evidence that its submission is approved by the 105889°— 19 26 402 Chief Operating Officer of the Railroad upon which the controversy has arisen and by the Chief Executive Officer of the Organization concerned. Where two or more organizations are jointly concerned, the submission should be joint, if practicable. Article 11 expressly precluded a consideration by the Railway Board of Adjustment No. 3 of any matter unless officially referred to it in the manner prescribed in the memorandum of understand- ing. Article 14 requires that in each case an effort should be made to present a joint concrete statement of facts as to any controversy. Statements of fact, whether joint or separate, should be sufficiently comprehensive to give an understanding of the controversy that the Board is called upon to decide. Where briefs, or additional evidence are to follow, notice thereof should accompany the submission. Where additional matter is to- follow the submission, the case will not be transmitted to the Board of Adjustment by the Division of Labor until the additional data shall ha^-e been received. It is requested that three copies of the joint concrete statement be filed with the Division of Labor for matter of record and for infor- mation of the Board. Briefs and documentary evidence need not be furnished in duplicate, but w4ienever i)ossible, should be attached to the three copies of the joint statement. It will be noted that Supplement No. 6 to General Order No. 27, bearing date of August 30th, 1918, has modified Article 9 of General Order 53 to the extent that interpretations to wage orders will be issued in accordance with the provisions of Supplements 6 and 6-A. W. G. McAdoo, Director General of Railroads. CiRCULAU No. 60. Washington, December 1, 1918. P^ffective this date the following railroads are transferred from the Eastern to the Allegheny Region: 1. Pennsylvania Lines west of Erie and Pittsburgh; Cincin- nati, I^banon & Northern Railway and Lorain, Ashland & Southern Railroad. Mr. G. L. Peck. Federal Manager, Pitts- burgh, Pa. 2. Baltimore & Ohio Railroad west of Parkersburg and Pitts- burgh, and Dayton & Union Railroad, Mr. C. W. Galloway, Federal Manager, Cincinnati, Ohio. Until otherwise advised by Regional Director Markham, Mr. H. A. Worcester, District Director, will in respect of these properties con- 403 tiniie in his present capacity, reporting to Mr. Markhani, and in respect of the lines under his jurisdiction in the Eastern Kegion reporting to Regional Director Smith. W. G. McAdoo, Director General of Railroads. Circular Xo. G7. Washington, December J, 1918. In cases of loss of or damage to property by fire wliile under Fed- eral control, the matter should be handled on the following basis: First: Reports of all fires involving property under Federal con- trol are to be made in accordance with instructions heretofore or here- after issued by the Regional Directors as directed by the Division of Finance and Purchasas Fire Loss Protection Section. Seco7id: In the case of damage by fire to any property' under Fed- eral control, other than rolling stock equipment, which will be gov- erned by special rules or practices now or hereafter in force, there should be an immediate determination by the Federal Manager, sub- ject to the approval of the Regional Director, as to rebuilding. Third : If the decision is to rebuild either in kind or on a different plan or with enlargements, the Federal Manager, with the approval of the Regional Director, shall determine upon such expenditures as may be required for the replacement of property in so far as such expenditures are chargeable to operating expenses. The approval of the Director of the Division of Capital Expenditures shall be secured in all cases involving expenditures chargeable to additions and better- ments. Fourth: Adjustments of fire losses, other than loss of rolling stock equipment, are to be made as between the corporation and the United States Railroad Administration as follows: An immediate effort should be made through the staffs of the Fed- eral Managers to arrive at an agreement with the corporation as to the value of the property of the corporation destroj'ed or the amount of the damage due to the fire at the time of the fire, in case the prop- erty is not restored or replaced, or as to the cost of restoration or re- placement thereof, chargeable to operating expenses, and the cost of such part of the restoration or replacement as is chargeable to invest- ment in road and equipment, respectively. Such agreement shall be subject to the approval of the Regional Director and of the Directors of the Divisions of Finance and Purchases and of Public Service and Accounting and shall be filed by the Federal Manager with his Fed- eral Auditor. In case of failure to agi'ee with the corporation, the 404 amounts chargeable shall be determined under regulations established by the Director of Public Service and Accounting. W. G. McAdoo, Director General of Railroads. Circular No. 68. Washington, December 26, 191S. Effective this date the Pittsburgh & Lake Erie, the Monongahela, the Pittsburgli & West Virginia, and the West Side Belt Railroad are transferred from the Allegheny Region to the Eastern Region, and the Grand Rapids & Indiana Railroad is transferred from the Eastern Region to the Allegheny Region. *= W. G. McAdoo, Director General of Railroads. Circular No. 69. Washington, December SO., WIS. Effective January 1, 1919, the Secret Service branch of the Claims and Property Protection Section of the Division of Law is termi- nated, and instead thereof the Secret Service and Police Section of the Division of Operation is created. Mr. W. J. Flynn is appointed Chief of the Secret Service and Police Section, with office in Southern Railroad Building, Washing- ton, reporting to the Director, Division of Operation, effective January 1, 1919. The Chief of the Secret Service and Police Section will deal through the Regional Directors as to matters affecting the Police Service of the various railroads under the jurisdiction of the several Regional Directors. ^ W. G. McAdoo, Director General of Railroads. INDEX TO GENERAL ORDERS. Account books, new and 3e])arate, to be opened, carriers by water. ... G. O. No. 52 Account, capital, work involving charges to G. O. No. 12 Accounting, carriers by water G. O. No. 52 Accounting, date beginning G. O. No. 2 Accounting officer, chief, when in general charge of one or more accounting organizations of the Director General shall be designated "Federal auditor," must obtain express authority (except in special cases) to perform any services for a railroad corporation G. O. No. 41 Accounting, rules and regulations G. O. No. 17 Accounting, for use of equipment and facilities G. O. No._31 Accounts and bills, interroad G. O. No. 30 Accounts, examination and checking of bills G. O. No. 20 Accounts, interline passenger G. O. No. 32 Acquisition and construction of equipment G. O. No. 35 Actions at law, suits to be brought directly against Director General. . G. O. No. 50 Additions and betterments costs, bills by one carrier against another carrier under Federal control G. O. No. 47 Additions and betterments made to floating equipment, water lines under Federal control G. O. No. 52 Additions costing more than |1,000 G. O. No. 12, Sup. No. 1 Adjustment Board No. 1 G. O. No. 13 G. O. No. 27 Adjustment Board No. 2 G. O. No. 29 Adjustment Board No. 3 G. 0. No. 53 Adjustment of certain disputes between American Railway Express Co. and its employees, di\dsion of lal)or of United States Railroad Administration named as tribunal G. O, No. 54 Advances in all express rates and charges on all traflic carried by the American Railway Express Co. taken under Federal control under act of Congress ap- proved Aug. 29, 1918 G. O. No. 56 Advertising, newspaper, issuing passes account of G. O. No. 6, Sup. No. 1 G. O. No. 6, Sup. No. 2 Agency relief claims undercharges and overcharges, disposition of.. G. O. No. 55 Agent telegraphers and telephoners, rates of pay. rules for overtime and work- ing conditions (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 13 Agents, expenditures for G. O. No. 6 Agents, rates of pay (Art. I) (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 11 G. O. No. 27, Sup. No. 13 Agents of steamship lines, status of G . O. No. 19 Agreement providing for basis of compensation and regulations of employ- ment G. O. No. 53 (405) 406 Agreements, rates of pay and rules (Art. IX) (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 11 G. 0. No. 27, Sup. No. 13 Agreements between regional directors with chief executive officers of order of Railroad Telegraphers, Switchmen's Union of North America, Brother- hood of Railway Clerks, and United Brotherhood of ]\Iaintenance of Way Employees G. O. No. 53 Aishton, R. II., agreement between regional directors and labor unions G. O. No. 53 Aishton, R. H., regional director G. O. No. 4 Alaska, transportation charges G. O. No. 25-A Allied nations, transportation charges G. 0. No. 25-A Amalgamated Sheet Metal Workers' International Alliance G. 0. No. 29 American Railway Association, daylight saving law G. O. No. 14 American Railway Express Co. and its employees, tribunal named for adjust- ment of disputes G. O. No. 54 American Railway Express Co., increase of operating revenues G. 0. No. 56 American Railway Express Co., matters presented by officers and employees of, investigated by board of railroad wages and working conditions G. O. No. 27, Sup. No. 9 American Red Cross transportation charges G. O. No. 25-A Appeal, right of, by employees or representatives (Art. VII) (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 11 G. O. No. 27, Sup. No. 13 Application for interpretation of wage order (where differences of opinion ne- cessitating formal interpretation arise) to be made by regional director, chief executives, chairmen railway boards of adjustment, or director of di- \dsion of labor G. O. No. 27, Sup. No. 6-A Appointment of G. A. Tomlinson G. O. No. 33 Apportionment of revenues G. O. No. 32 Approval, filling of vacancies G. O. No. 9 Assistant passenger ticket agent performing work of city ticket agent tempo- rarily, rate of pay, question and decision G. O. No. 27, Interp. No. 7 Assistants and tenders G. O. No. 27, Sup. No. 8 Associations of carriers, expenditm-es account of G. O. No. Attachment, garnishment, or like process. See Garnishment G. O. No. 43 Attorneys, employment of, expenditures account G. O. No. 6 Attorneys, officers and employees in railroad service, rules regulating political activity G. O. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1 thereto) Auction, nonperishable freight refused or unclaimed at destination by con- signees, after 00 days to be sold at auction by carriers G. O. No. 34-A (Substituted for G. O. No. 34) Auditor, services of (see accounting officer, chief) G. O. No. 44 Authority and duties of Board of Railroad Wages and Working Conditions extended G. O. No. 27, Sup. No. 6 Authority, executive G. O. No. 16 Back pay as in General Order No. 27, employee's and employer's claim, deci- sion G. O. No. 27, Interp. 4 Back time payments G. O. No. 27, Sup. No. 4 Baggage charges, increase G. O. No. 28 Baggage charges, rules G. O. No. 25 407 Bao'^aee collections, excess, local and interline, standard form for reports "^ a ' Q Q JT^ 49 Bagffaffe revenues, excess, apportionment of G. 0. No. 32 BaS4emen,payof ''■''■'''■ r'a^Z 21 Bases for apportioning inter-road freight revenues (jr. u. rs o. ^i Basic minimum rate. (Art. ID (superseding G. O. No. 27 and in lieu thereof) G. 0. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 13 Basic trades, helpers in, compensation. G. O. No. 27, Sup. No. 4, Amendment No. 1 Basis of compensation and regulation of employment, agreement providing for G. O. No. 53 Behavior of employees to public G- 9' ^^- "^^ Betterments and additions costs, bills by one carrier against another carrier under Federal control G. 0. No. 47 Betterments and additions made to floating equipment, water lines under Federal control G. 0. No. 52 Betterments costing more than $1,000 G. 0. No. 12, Sup. No. 1 Bills and accounts, inter-road G. 0. No. 30 Bills, car repairs ^- n at*"' on Bills, for joint facilities G. O. No. ^0 Bills, operating, checking of ---- Gr. 0. No. 20 Bills, rendered account of errors in charges G. 0. No. 25 Bills for repairs, by one carrier against another carrier under Federal control.. ^ G. 0. No. 47 Blacksmith apprentices G. O. No. 27, Sup. No. 4 Blacksmith helpers G. O. No. 27, Sup. No. 4 Blacksmiths G. O. No. 27, Sup. No. 4 G. O. No. 27, Sup. No. 4, Addendum No. 2 Blacksmiths and helpers engaged in work on interlocking and signaling systems rates of pay, question and decision G. O. No. 27, Sup. No. 4, Interp. No. 2 Block operators, rates of pay, rules for overtime and working conditions (super- seding G O. No. 27 and in lieu thereof) G. 0. No. 27, Sup. No. 10. G. 0. No. 27, Sup. No. 13 Board of Adjustment No. 1 G- 0. No. 13 ■* G. O. No. 27 Board of Adjustment No. 2 G. 0. No. 29 Board of Adjustment No. 3 G. O. No. 53 Board of Railroad Wages and Working Conditions, duties and authority are extended to include investigations and recommendations to the Director General of interpretations of all such wage orders, when requested to do so by director of Division of Labor G. 0. No. 27, Sup. No. 6 Board of Railroad Wages and Working Conditions to investigate matters pre- sented bv officers and employees of American Railway Express Co. . G. O. No. 27, Sup. No. 9 Boards of directors, status G. 0. No. 16 Boilermaker apprentices '- G. O. No. 27, Sup. No. 4 Boilermaker helpers G. O. No. 27, Sup. No. 4 Boilermakers G. 0. No. 27, Sup. No. 4 G. 0. No. 27, Sup. No. 4, Addendum No. 2 Bonds, fidelity, premiums on -' G- O. No. 36 Books, corporate, carriers by water Cr. O. No. oL Books, Federal, carriers by water -^ Cr. 0. No. 52 Books, new and separate, to be opened, referred to as "Federal books," carriers bv;ater G. 0. No. 52 408 Brakemen, passenger, or flagmen (Art. VI, G. O. No. 27). . G. O. No. 27, Sup. No. 12 Brakemen, pay of G. O. No. 27, Interp. 1 Bridge and house carpenters, rates of pay, question and decision G. O. No. 27, Sup. No. 8, Interp. No. 2 Brotherhood of Locomotive Engineers G. O. No. 13 Brotherhood of Locomotive Firemen and Engineers G. O. No. 13 Brotherhood of Maintenance of Way Employees, agreement ^vith regional directoi-s G. O. No. 53 Brotherhood of Railroad Trainmen G. O. No. 13 Brotherhood of Railway Carmen of America G. O. No. 29 Brotherhood of Railway Clerks, agreement with regional directors G. O. No. 53 Builders, car G. 0. No. 27, Sup. No. 4, Addendum No.2 Bulk grain loading G. 0. No. 57 Bush, B. F., agreement between regional directors and laljor unions .. G. 0. No. 53 Calls, pav for (Art. IV) G. 0. No. 27, Sup. No. 7, Interp. No. 1 G. 0. No. 27, Sup. No. 8, Interp. No. 1 Calls to work (Art. V) (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 13 Calls to work {Ait. VI) (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. H G. O. No. 27, Sup. No. 13 Capital account, work involving charges to G. 0. No. 12 Capital account, work involving charges to, of $1,000 or more, $10,000 or more, and $25,000 or more G. O. No. 12, Sup. No. 1 Car department employees G. 0. No. 27, Sup. No. 4, Addendum No. 2 Carload and L. C. L. nonperishable freight, refused or unclaimed at destina- tion by consignees, after 60 days to be sold at public auction by carriers G. 0. No. 34-A (Substituted for G. O. No. 34) Carmen G. O. No. 27, Sup. No. 4 G. O. No. 27, Sup. No. 4, Addendum No. 2 Car repairs, bills • G. O. No. 20 Car seal records G. O. No. 41 Carpenters G. O. No. 27, Sup. No. 4, Addendum No. 2 Carpenters, bridge and house, rates of pay, question and decision. ... G. 0. No. 27, Sup. No. 8, Interp. No. 2 Carrier corporations, suits against, for which they are not responsible, to be brought directly against the Director General G. 0. No. 50 Carriers' associations, expenditiu'es for G. 0. No. 6 Carriers, bills for repairs by one carrier against another carrier under Federal Control G. O. No. 47 Carriers, common, laws and liabilities to which subject G. O. No. 18 Carriers, suits against G. O. No. 18-A Gamers bv water, rules, regulations governing, transactions of, accounting G. O. No. 52 Care, bills for repairs by one carrier against another carrier under Federal control .' G. 0. No. 47 Cars for bulk grain loading G. O. No. 57 Cash basis transportation charges G. O. No. 25 G. O. No. 25-A Cash report, weekly G. 0. No. 23 G. O. No. 23, Sup. No. 1 Cash representing receipts since and including Jan. 1 , 1(118 G. O. No. 37 G. O. No. 37-A 409 Chairmen of boards of directors, status ; G. O. No. 16 Charge.", baggage, increase G. O. No. 28 Charges, baggage, rules G. O. No. 25 Charges to capital account G. O. No. 12 Charges, freight G. 0. No. 25 Charges, storage, rules G. 0. No. 25 Charges, toll , Cx. O. No. 33 Charges, transportation, basis G. 0. No. 25 Charges, transportation, collection of G. 0. No. 2o-A Charges, transportation, collection of, disposition of oA-ercharges, undercharges, and agency relief claims G. 0. No. 55 Check, specimen, heading to be changed G. O. No. 37-A Checking of operating Vjills G. 0. No. 20 Chief accounting officer, designation, services. (See accounting officer, chief.) G. 0. No. 44 Chief executives, chaii-men railway boards of adjustment, application for inter- pretation of wage order G. O. No. 27, Sup. No. 6-A Chore boys, pay, rules G. 0. No. 27, Sup. No. 7 Citv ticket agent, rate of pav for temfwrary work, question and decision G. 0. No. 27, Interp. 7 Claim for death or iujiuv, suits to be brought directlv against Director General G. 0. No. 50 Claim of employee, rate of pay for temporary work as city ticket agent, question and decision. G. O. No. 27, Interp. 7 Claim, employee's and employer's, increase of salary as in General Order No. 27, decision G. O. No. 27, Interp. 5 Claim, employer's and employee's, back pay as in General Order No. 27, deci- sion .' G. 0. No. 27, Interp. 4 Claims, agency relief, overcharges and undercharges, disposition of G. 0. No. 55 Claims, checking of bills for G. 0. No. 20 Claims, freight, for loss and damage G. 0. No. 41 Claims (jurisdiction of com-t ) G. 0. No. 26 Claims for loss' and damage of grain, disposition of G. 0. No. 57 Classification and preservation of rates (Art. Ill) (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 11 G. O. No. 27, Sup. No. 13 Classifications, regulations and practices, express rates and charges, legends for title page of schedules G. O. No. 56 Cleaners, coach, pay, hours, rules G. O. No. 27, Sup. No. 4, Addendum No. 1 Clear record cars, grain loading G. O. No. 57 Clerical forces, rates of pay and rules for overtime and working conditions; also apply to certain employees in stations, storage, or terminal warehouses, docks, storehouses, shops, and vards, upon railroads under Federal control G. 0. No. 27, Sup. No. 7 Clerks, Railway, Brotherhood of, agreement with regional directors. . . G. O. No. 53 Clocks and watches in train dispatchers' offices a.nd in all other offices open at 2 a. m., present standard time, Sunday, Oct. 27, 1918, must be tiu'ned back one horn* to indicate 1 a. m G. O. No. 45 Clyde Steamship Co., control of G. O. No. 19 Coach cleaners, pay, rules G. O. No. 27, Sup. No. 4, Addendum No. I Collection of transportation charges, basis G. 0. No. 25 Collection of transportation charges and disposition of o\ercharges, under- charges, and agency relief claims G. O. No. 55 410 Colored brakemen, compensation and ov-ertime mles G. O. No. 27, Sup. No. 12 Colors used for two classes of reports, ticket and excess baggage G. O. No. 49 Commodity rates, both interstate and intrastate, American Railway Express Co. (Section II) G. 0. No. 56 Common carriers, laws and liabilities to which subject G. 0. No. 18 G. 0. No. 26 Compensation, basis for G- 0- No. 13 Compensation, basis of and regulations of employment, agreement for. G. 0. No. 53 Compensation, employees' . . ". Interp. 3 to G. 0. No. 27 and to Sup. No. 4, Addenda Nos. 1 and 2, Interp. No. 1, and Amendment No. 1 thereto Compensation for extra services (superseding G. 0. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. 0. No. 27, Sup. No. 13 Compensation, helpers in basic trades, inequities removed G. 0. No. 27, Sup. No. 4, Amendment No. 1 Compensation rates for certain classes of employees (specified in the respective shop crafts) who have heretofore received a rate in excess of the established minimum rate and rates of compensation for classes of employees named in section3 5 and 6 of General Order No. 27 which were not included in Supple- ment No. 4 G. O. No. 27, Sup. No. 4, Addendum No. 2 Competition, American Railway Express Co., with employees in other indus- tries investigations by Board of Railroad Wages and Working Conditions. .. G. O. No. 27, Sup. No. 9 Complaint, American Railway Express Co. and its employees G. O. No. 54 Complaints, courtesy must be shown public G. O. No. 40 Composite mechanics, rates of pay, question and decision G. O. No. 27, Sup. No. 4, Interp. No. 2 Conditions, employment Interp. 1 to G. O. No. 27, Sup. No. 4, and to Addendum No. 2 Conditions of employment, hours, wages G. O. No. 27, Sup. No. 4 G. O. No. 27, Sup. No. 5 Conductors' hours and pay G. 0. No. 27, Sup. No. 2 Conductors, pay of G. O. N'o. 27, Interp. 1 G. 0. No. 27, Interp. 2 Confiscated freight, confiscation in transit, charges of G. O. No. 55 Consignees refusing non-perishable freight, auction of, by carriers after 60 days, notice to, concerning shipments G. O. No. 34-A (Substituted for G. 0. No. 34) Consolidated ticket offices, standard forms for reporting ticket sales and excess baggage collections, to be introduced no later than January 1, 1919. . G. O. No. 49 Construction and acquisition of equipment G. O. No. 35 Construction and acquisition of equipment for New York Canal section . G. O. No. 22 Construction, maintenance, and operation of new industry tracks G. O. No. 15 Contracts for construction, acquisition, or chartering of e(iuii)ment G. O. No. 35 Contracts, exchange of advertising for free railroad transportation . . G. O. No. 6, Sup. No. 1 G. O. No. 6, Sup. No. 2 Contracts Ijetween Government and railroad cumpanies. . . G. O. No. 12, Sup. No. 1 Contracts for industry tracks G. O. No. 15, Sup. No. 1 Contracts for transportation of traffic G. O. No. 35 Control of railroads <^- O- No. 1 Control of railroads, accounting Cr. 0. No. 2 Control of sale of liquors and intoxicants G. O. No. 39 Control of steamship cdmpnnios G. O. No. 19 411 Controversies between American Railway Express Co. and its employees G. O. No. 54 Controversies, labor G. 0. No. 29 Controversies, officers and employees to adjust misunderstandings G. 0. No. 53 Controversy, interpretations of wage agreements (Art. II). G. 0. No. 27, Sup. No. 7, Interp. No. 1 G. O. No. 27, Sup. No. 8, Interp. No. 1 Cooperation, officials and emplovees of the American Railway Express Co G. O. No. 54 Coopering of cars for l)ulk-grain loading G.O. No. 57 Corporate books, carriers jjy water G. O. No. 52 Counties, transportation charges G. O. No. 25-A Courtesy to public G. O. No. 40 Codington, Harry, Railroad Wage Commission G. O. No. 5 Crafts, mechanics performing work of two or more crafts, rates of pay, question and decision G.O. No. 27, Sup. No. 4, Interp. No. 2 Cream and milk mileage, American Railway Express Co G. O. No. 56 Daily-paid employees, hourly rate (superseding G. O. No. 27 and in lieu thereof) - G. O. No. 27, Sup. No. 10 G. 0. No. 27, Sup. No. 13 Damage claims (jurisdiction of court) G. O. No. 26 Damage of grain, disposition of claims G. O. No. 57 Dangerous articles or explosives, unclaimed or refused shipments of. . G. 0. No. 34-A (Substituted for G. O. No. 34) Daylight saving G. 0. No. 14 Daylight saving; clocks to be turned back at 2 a. m. present standard time, Sunday, October 27, 1918; all clocks and watches in train dispatchers' offices and in all other offices open at that time must be turned back one hour to indicate 1 a. m.; each railroad must adopt measures necessary to properly safeguard movement of its trains at time of change G. 0. No. 45 Death, claim for, suits to be brought directly against Director General. . G. O. No. 50 Debts, railroad employees (see Garnishment t G.O. No. 43 Decision and question, bridge and house carpenters, rates of pay G. O. No. 27, Sup. No. 8, Interp. No. 2 Decision and question, city ticket agent, rate of pay for temporary work G. O. No. 27, Interp. 7 Decision and question, rates of pay for mechanics engaged in work on inter- locking and signaling systems G. O. No. 27, Sup. No. 4, Interp. No. 2 Decision and question, station agent doing special service, rate of pay. . G. O. No. 27, Interp. 6 Defective record cars, grain loading G. O. >. o. 57 Definition, cars for grain loading G. O. No. 57 Delegates to political conventions, railroad employees holding municipal offices G . O . No . 48 (Substituted for G. O. No. 42 and Sup. No. 1 thereto) Delivery of astray freight G. O. No. 41 Demurrage G. O. Ino. 3 G. O. No. 7 Department, maintenance of way; rates of pay and rules for overtime and work- ing conditions of employees G. O. No. 27, Sup. No. 8 Derrick engineers (sec. 6, Art. I, Sup. No. 4 to G. O. No. 27), Article XII. . Interp. 8 to G. 0. No. 27 and to Sup. No. 4, Addenda Nos. 1 and 2, Interp. No. 1, and Amendment No. 1 thereto Destination weights, grain loading G. O. No. 57 412 Destroyed equipment, l)ills })y one carrier against another carrier under Federal control G. O. No. 47 Destroyed freight, destruction in transit, charges for G. O. No. 55 Differences between management and employees (Art. IX) (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 11 G. 0. No. 27, Sup. No. 13 Differentials in established rates for hourly workers, overtime (Art. VIII), G. O. No. 27, Sup. No. 7, Interp. 1 G. O. No. 27, Sup. No. 8, Interp. 1 Direr-tor DiAision of Labor, application for interpretation of wage order. G. O. No. 27, Sup. No. 6-A Director General, suits to be brought directly against G. O. No. 50 Directors, boards of, status G . . No. 16 Directors, train and tower, rates of pay, rules for overtime and working condi- tions (suDerseding G. O. No. 27 and in lieu thereof) ... G. 0. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 13 Discipline G. O. No. 27, Sup. No. 8 Discipline and grievances G- 0. No. 27, Sup. No. 7 Discipline and grievances (Art. VII) (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Slip. No. 11 G. O. No. 27, Sup. No.'lS Discontinuance of use of industry tracks G. O. No. 15, Sup. No. 1 Disposition of claims for loss and damage of grain G. O. No. 57 Disposition of overcharges, undercharges, and agency relief claims G. O. No. 55 Disputes between American Railway Express Co. and its employees, tribunal named for adjustment Gr. O. No. 54 District of Columbia transportation charges G. O. No. 25-A Division of Labor of the United States Railroad Administration will hear and investigate and recommend adjustments of any disputes between American Railway Express Co. and its employees not affecting wages and working conditions G. O. No. 54 Doors of cars for grain loading G. O. No. 57 Draft boards, members of, positions not construed as political offices. . . G. O. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1 thereto) Duplicate payments, collection of freight charges G. O. No. 55 Duties and authority of Board of Railroad Wages and Working Conditions ex- tended G. 0. No. 27, Sup. No. 6 Eastern Railroads, region Gr- O. No. 4 Eastern Region created Gf . O. No. 4 Eight consecutive hours, exclusive of meal period, a day's work G. O. No. 27, Sup. No. 4, Addendum No. 1 Eight consecutive hours a days work (superseding G. O. No. 27 and in lieu thereof) .' G. 0. No. 27, Sup. No. 11 G. O. No. 27, Sup. No. 13 Eight-hour day G. O. No. 27, Sup. No. 2 Election of railroad officials, attorneys, or employees to political offices for- bidden except if elected to political offices prior to issuance of G. O. No. 42; such terms of office may be completed G. O. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1 thereto) Electric welders G. O. No. 27, Sup. No. 4, Addendum No. 2 413 Electrical Avorkers (Sup. Xo. 4, Art. I, sees. 5 and 5-A), Article IX Interp. .3 to G. O. No. 27 and to Sup. No. 4, Addenda Nos. 1 and 2, Interp. No. 1, and Amendment No. 1 thereto Electrical workers, second class G. O. No. 27, Sup. No. 4 Electricians and helpers engaged in work on interlocking and signaling systems, rates of pay, question and decision G. O. No. 27, Sup. No. 4, Interp. 2 Elevated and tunnel common labor, rates for overtime (Art. VIII). . . G. O. No. 27, Sup. No. 8, Interp. 1 Employee's claim, rate of pay for temporary work as city ticket agent. . G. O. No. 27. Interp. 7 Employee doing special service as station agent, rate of pay, question and de- cision Gr. O. No. 27, Interp. rchandi6e rates from points m the United States to points in Canada, Amer- ican Railway Express Co. (Sec. I) G. O. Xo. 56 Merchants & Miners Transportation Co., control of G. O. Xo. 19 Messengers, pay, rules G. O. No. 27, Sup. Xo. 7 Method of obtaining hoiu-ly rate (Superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. Xo. 10 G. O. No. 27, Stip. Xo. 13 Mileage, milk and cream, American Railway Express Co. (Sec. Ill) G. O. Xo. 56 Milk and cream mOeage, American Railway Express Co. (Sec. III).. G. O. No. 56 Millwrights G. O. No. 27, Sup. No. 4, Addendum No. 2 Minimiim rate (Art. in (Superseding G. O. Xo. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 13 Mississippi and Warriors Waterways, appointment of Federal manager of G. O. No. 35 Mifiunderstandings, officers and employees to adjust controversies G. O. No. 53 Molders - G. O. No. 27, Sup. No. 4 Moldors and helpers; cupola tenders (Sup. No. 4, Art. I, Sees. 7 and 7-B) Article XIII .-.. Interp. 3toG. O. No. 27, and to Stip. No. 4, Addenda Nos. 1 and 2, Interp. No. 1, and Amendment No. 1 thereto Monthly paid employees, hoiu-ly rate (Superseding G. O. No. 27, and in lieu * thereof) '. G. O. No. 27, Stip. No. 10 G. O. No. 27, Sup. No. 13 Monthly statements; interroad freight claims, method of payment G. O. No. 41 Monthly wages G. O. No. 27, Sup. No. 2 Mimicipal offices held by attorneys, officers and employees in railroad service, rules regulating ^- O- No. 48 (Substituted for G. O. No. 42 and Sup. No. 1 thereto) 421 MuBicipaJitiee, transportation charges G. O. No. 25-A National system of transportation O. O. No. 1 Neglecting railroad duties to engage in politics; not permitted by railroad employees holding municipal offices G. O. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1 thereto) New books of account to be opened, carriers by water G. O. No. 52 New Jersey and New York Canals, Federal Manager of G. O. No. 33 Newspaper advertising, issuance of passes G. O. No. 6 G. O. No. 6, Sup. No. 1 G. O. No. 6, Sup. No. 2 New York Canal Section, creation of G. O. No. 22 New York and New Jersey Canals, Federal Manager of G. O. No. 33 New York State Barge Canal, creation of G. O. No. 22 Nonperishable freight refused or unclaimed at destination by consignees, after 60 days to be sold at public auction by carriers G. O. No. 34-A (Substituted for G. O. No. 34) Notaries public, positions of, not construed as ]X)litical offices G. O. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1 thereto) Notice given railroad companies by Government of the making or ordering of additions, betterments, road extensions, equipments, etc., costing more than $1,000 G. O. No. 12, Sup. No. 1 Office boys, pay, rules G. O. No. 27, Sup. No. 7 Officers, agents, and employees of steamship lines, statue of G. O. No. 19 Officers, attorneys, and employees in railroad service ; rxxles regiUating political activity G. O. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1 thereto) Officers and employees, American Railway Express Co., matters presented by, investigated by Board of Railroad "Wages and Working Conditions. G. O. No. 27, Sup. No. 9 Officers of pubUc libraries, positions not construed as political offices. . G. 0. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1) Officials, attorneys, employees of United States Railroad Administration for- bidden political activity G. O. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1) Oilers G. O. No. 27, Sup. No. 7 Operating bills, checking of G. O. No. 20 Operating expenses, premiums on fidelity bonds to be charged to G. O. No. 36 Operating expenses, salaries G. O. No. 9 Operating income, water lines under Federal control G. O. No. 52 Operating officials, suits or proceedings G. O. No. 50 Operating revenues, expenditures G. O. No. 6 Operating revenues, express, increase of G. 0. No. 56 Operation of new industry tracks G. O. Xo. 15 Operators, block; rates of pay; rules for overtime and working conditions (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 13 Order of Railroad Telegraphers, agreement with regional directors. ... G. O. No. 53 Order of Railway Conductors G. O. No. 13 Overcharges, undercharges, and agency relief claims; disposition of. . . G. O. No. 55 Overtime: coach cleaners G. O. No. 27, Sup. No. 4, Addendum No. 1 Overtime; monthly, weekly, or daily paid employees G. O. No. 27, Sup. No. 7, Interp. No. 1 G. O. No. 27, Sup. No. 8, Interp. No. 1 Overtime rules G. O. No. 27, Sup. No. 7 422 ( hertime work, Sundays and holidays C Art. V) G. O. No. 27, Sup. No. 7, Interp. No. 1 G. O. No. 27, Sup. No. 8, Interp. No. 1 Overtime and working conditions, rates of pay for certain employees (supersed- ing G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 11 G. O. No. 27, Sup. No. 13 0^•ertime and working conditions, rules for employees of Maintenance of Way Department, pay rates G. O. No. 42, Sup. No. 8 Park boards, members of, positions not construed as political offices. . . G. O. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1) Passenger accounts, interline G. O. No. 32 Passenger brakemen or flagmen (-Vrt. YI, G. O. No. 27).. G. O. No. 27, Sup. No. 12 Passenger cars, bills for repairs ])y one carrier against another carrier under Federal control G. O. No. 47 Passenger and freight rates, increase G. O. No. 28 G. O. No. 28, Sup. Passenger train crew employees designated as passenger, brakemen, or flagmen {Art. VI, G. O. No. 27 ) . G. O. No. 27, Sup. No. 12 Passes, free G. O. No. 6 G. 0. No. 6, Sup. No. 1 G. O. No. 6, Sup. No. 2 Pay G. O. No. 27 G. 0. No. 27, Interp. 1 Pav for calls (Art. IV) G. O. No. 27, Sup. No. 7, Interp. No. 1 G. O. No. 27, Sup. No. 8, Interp. No. 1 Pay for composite mechanics; question and decision G. O, No. 27, Sup. No. 4, Interp. No. 2 Pay for employee doing temporary work as city ticket agent; question and decision •.--.. G. O. No. 27, Interp. 7 Pay, employees Interp. 3 to G. O. No. 27 and to Sup. No. 4, Addenda Nas. 1 and 2, Interp. No. 1, and Amendment No. 1 thereto Pay for female employees for the same class of work shall be the same as that of men and their working conditions must be healthful and fitted to their needs (Art. VIII ) (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 (r. O. No. 27, Sup. No. 13 Pay, rates of, hoiise and bridge carpenters; quesdon and decision.... G. 0. No. 27, Sup. No. 8, Interp. No. 2 Pay rates and rules for coach cleaners G. O. No. 27, Sup. No. 4, Addendum Pay rates of employees in any department performing the classes of work speci- fied in Supplement No. 4 to General Order No. 27 and Addendum No. 2 Interp. No. 1 to G. O. No. 27, Sup. No. 4 G. O. No. 27, Sup. No. 4, Addendum No. 2 Pay rates, rules for overtime and working conditions for certain employees (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 11 G. 0. No. 27, Sup. No. 13 Pay rates and rules for overtime and working conditions; clerical forces and certain other employees G. O. No. 27, Sup. No. 7 Pay rates and rules for overtime and working conditions for employees in maintenance of way department G. O. No. 27, Sup. No. 8 423 Pav-roU classification Interp. 1 to G. O. No. 27, Sup. Xo. 4 G. O. Xo. 27, Sup. Xo. 4, Addendum Xo. 2 Pay for station agent doina; special son-ice; question and decision G. O. No. 27, Interp. 7 Payments for back time G. O. No. 27, Sup. No. 4 Payments, duplicate collection of freight charges G. 0. No. 55 Perishable freight, rules governing disposition of refused or unclaimed freight. . G. O. No. 34-A (Substituted for G. O. No. 34) Personal grievances, disputes between American Railway Express Co. and its employees G. O. X^o. 54 Pei-sonal giievances, Railway Board of Adjustment No. 3 G.O. No. 53 Pei-sonal injuries, suits account G. O. No. 26 Piecework basis, employees earning in excess of 43 cents per hour; rates of pay; question and decision G. 0. No. 27, Sup. No. 7, Interp. Xo. 2 Pipe fitters and helpers engaged in work on interlocking and signaling systems; rates of pay; question and decision G. O. No. 27, Sup. Xo. 4, Interp. Xo. 2 Pleadings in all law actions for cause arising since Dec. 31, 1917, to be amended by substituting Director General for carrier corporations. G. O. Xo. 50 Policies, fire insurance G. O. Xo. 24 Policy of United States Railroad Administration to forbid political acti\-ity to all officials, employees, or attorneys; they must demonstrate to American people that under Federal control employees can not be made a part of any political machine nor be used for anv organized partisan or selfish purpose. . G. 0. No. 48 (Substituted for G. O. Xo. 42 and Sup. Xo. 1 thereto) Political activity of any officer, attorney, or employee of United States Rail- road Administration, rules regulating G. O. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1 thereto) Political campaign, conduct of, not t>o be assumed by railroad employees hold- ing municipal offices G . O. No. 48 (Substituted for G. O. No. 42 and Sup. No. 1 thereto) Political purposes, expenditures for G. 0. No. 6 Porters G. O. No. 27, Sup. No. 12 Porters, hours of pay of G. O. No. 27, Sup. No. 2 Ports, utilization G. O. No. 1 Positions held by telegraphers, telephone operators (except switchboard oper- ators), agent telegraphers, agent telephoners, towermen, levermen, tower and train directors, block operators, and staffmen; rates of pay, rules for overtime, and working conditions (superseding G. O. No. 27 and in lieu thereof) G. O. Xo. 27, Sup. Xo. 10 G. O. Xo. 27, Sup. Xo. 13 Practices and regulations, classifications, express rates and charges; legends for title-page of schedules (sec. 8) G. 0. No. 56 Premiums on fidelity bonds G. 0. Xo. 36 Preser^-ation of rates and classification (Art. Ill) (superseding G. O. Xo. 27 and in lieu thereof) G. 0. Xo. 27, Sup. Xo. 10 G. O. Xo. 27, Sup. Xo. 11 G. 0. Xo. 27, Sup. Xo. 13 Pi'esidents, railroad, status of G. O. No. 16 Proceeding in Admiraltv, suits to be brought directly against Director General. G. O. No. 50 424 Proceeds, net, from auction sales of iinelaimefl freight, paid to owner on proof of interest G. (>. No. .34-A (Substituted for G. O. No. 34) Proclamation: President appointed William (r. McAdoo Director ay. rules for overtime, and working conditions (supersed- ing G. O. No. 27 and in lieu thereof) G. O. No. 27. Sup. No. 10 G. 0. No. 27, Sup. No. 13 429 Telephone operators, except switchboard operators, rates of pay, rules for over- time, aud working conditions (superseding G. O. No. 27 and in lieu thereof) tl. O. No. 27, Sup. No. 10 G. 0. No. 27, Sup. No. 13 Telephoners, agent, rates of pay, ndes for overtime, and working conditions (superseding G. O. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 13 Ten hours per dav. rates for overtime work (Art. II), G. O. No. 27, Sup. No. 7, Interp. No. 1 G. O. No. 27, Sup. No. 8, Interp. No. 1 Tenders and assistants G. O. No. 27, Sup. No. 8 Terminals; luiification G. O. No. 1 Through routings - G. O. No. 1 Ticket agent, assistant, performing work of city ticket agent temporarily; rate of pay; question and decision G. O. No. 27, Interp. 7 Ticket sales, interline and local, standard forms for reports G. 0. No. 49 Tickets; apportionment of revenue account sale of G. O. No. 32 Tickets, sale of G. O. No. 25 Time change; clocks to be tiu-ned back (see also Daylight saving) G. O. No. 45 Time, free ^- ^- ^o- ^ Time, free ; demurrage - G. O. No. 3 Time^ standard G. O. No. 14 Toll chai-ges G. 0. No. 33 Tomlinson, G. A., appointment G. O. No. 22; G. O. No. 33 Tonnage or piecework basis; employees earning in excess of 43 cents per hour; rates of pay; question and decision G. O. No. 27, Sup. No. 7, Interp. No. 2 Tower and train directors; rates of pay, rules for overtime, and working con- ditions (superseding G. O. No. 27 and in lieu thereof) . . G. O. No. 27, Sup. No. 10 G. 0. No. 27, Sup. No. 13 Towermen; rates of pay, rules for overtime, and working conditions (sui^ersed- ing G. 0. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. 0. No. 27, Sup. No. 13 Tracks (see construction, maintenance, and operation of new' industry tracks) ^- ^- ^o- 1^ Tracks, industry; contracts; discontinuance of use of tracks. G. O. No. 15, Sup. No. 1 Trades, basic ; compensation for helpers ; shop crafts G. O. No. 27. Sup. No. 4, Amendment No. 1 Traffic, contracts for transportation of G. 0. No. 35 Traffic, interstate and intrastate G. O. No. 7, Sup. No. 1 Traffic rates; intrastate ; American Railway Express < 'o. (sec. 4) G. O. No. 56 Train, crew employees, passenger, designated as passenger brakemen or flagmen (Art. YI, G. O. No. 27) G. O. No. 27. Sup. No. 12 Train porters G. O. No. 27, Sup. No. 12 Train and tower directors; rates of pay, rules for overtime, and working con- ditions (superseding G. O. No. 27 and in lieu thereof).. G, O. No, 27, Sup, No. 10 G. O. No. 27, Sup. No. 13 Transactions ; carriers by water G. 0. No. 52 Transactions involving revenues, expenses, taxes, rentals, and such other items as ai-e used in determining the water line operating income under Federal control G. 0. No. 52 Transportation charges; basis Ci. 0. No. 25 Transportation charges, collection of G. O. No. 25-A Transportation charges, collection and disposition of overcharges, under- charges, and agency relief claims G. 0. No. 55 430 Transportation, free, exchange of advertising for G. O. No. 6, Sup. No. 1 G. O. No. 6, Sup. No. 2 Transportation of property G. O. No. 33 Transportation systems G. O. No. 1 G. O. No. 38 Transportation of traffic, contracts for G. O. No. 35 Travelers, safety of G. O. No. 8 Travelers, safety upon railroads (see also G. O. No. 8) G. O. No. 46 Treasurers, Federal G. O. No. 37 Treasurers, local G. O. No. 37 G. O. No. 37-A Treasurers' reports G. O. No. 23, Sup. No. 1 Treatment, adjustment of controversies between American Railway Express Co. and its employees G. 0. No. 51 Tribunal named for adjustment of certain disputes between American Railway Express Co. and its employees; Division of Labor of the United States Railroad Administration to deal with controversies G. 0. No. 54 Tunnel and elevated common labor; rates for overtime work (Art. VIII) G. O. No. 27, Sup. No. 8, Interp. No. 1 Unclaimed or refused shipments, sold at auction after 60 days by carriers; notice to consignees G. O. No. 34-A (Substituted for G. O. No. 34) Uncollectible undercharges G. O. No. 55 Undercharges, overcharges, and agency relief claims, disposition of. . . G. 0. No. 55 Understanding, agreement between regional directors and labor unions. G. 0. No. 53 Understanding between Messrs. A. H. Smith. C. H. Markham, R. H. Aishton, Hale Holden. B. F. Bush, B. L. Winchell, N. D. Maher, regional dii-ectors representing railroads in their respective regions, and H. B. Perham, presi- dent Order of Railroad Telegraphers; S. E. Heberling, president Switch- men's Union of North America; J. J. Forester, president Brotherhood of Railway Clerks; A. E. Barker, president United Brotherhood of Maintenance of Way Employees G. O. No. 53 United Brotherhood of Maintenance of Way Employees, agreement with regional directors G. O. No. 53 United States Government cash, carriers by water G. 0. No. 52 United States Government transportation charges G. 0. No. 25-A United States mail, carrying of (Art. VI) (superseding G. 0. No. 27 and in lieu thereof) ^ G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 13 Universal interline waybilling and standard forms G. 0. No. 11 Upholsterers G. 0. No. 27, Sup. No. 4, Addendum No. 2 Utilization without regard to ownership G. 0. No. 1 Vacancies, filling of G. 0. No. 9 Vacancy in Board of Railway Wages and Working Conditions G. O. No. 53 Vacations (Art. \'IIIj (sujierseding G. O. No. 27 and in lieu thereof) G. 0. No. 27, Sup. No. 10 Wage commission G . O . No. 5 Wage order; differences of opinion necessitating interpretations; application made by regional dirctor, chief executives, chairman Railway Boards of Adjustment, or Director Division of Labor G. O. No. 27, Sup. No. 6-A Wages G. O. No. 27 G. O. No. 27, Sup. No. I Wages — Conductors, porters, maids G. O. No. 27, Sup. No. 2 431 Wages and hours G. O. No. 27 G. O. No. 27, Sup. No. 3 G. O. No. 27, Interp. No. 1 G. O. No. 29 Wages, hours, conditions of employment G. O. No. 27, Sup. No. 4 Wages, hours, and other conditions of employment G. O. No. 27, Sup. No. 5 Wages and hours, considered by Board of Railroad Wages and Working Condi- tions "- G. O. No. 53 Wages, inequalities, American Railway Express Co., investigated by Board of Railroad Wages and Working Conditions G. O. No. 27, Sup. No. 9 Wages, overtime work G. O. No. 27, Sup. No. 7, Interp. No. 1 G. O. No. 27, Sup. No. 8, Interp. No. 1 Wages; Railroad Wage Commission G- 0. No. 5 Wages, rates, and methods of computation G. O. No. 27 Wages; report of Railroad Wage Commission G. 0. No. 8 Wages and Working Conditions Board; duties and authority extended. G. 0. No. 27, Sup. No. 6 Water line operating income under P'ederal control G. O. No. 52 Waybills, destruction or confiscation of property G. O. No. 55 Waybills, notations of exceptions on waybills G. O. No. 41 Wayliills, universal interline waybilling G. O. No. 11 Weekly cash report G. O. No. 23 G. O. No. 23, Sup. No. 1 Weekly paid employees, hourly rate (superseding G. 0. No. 27 and in lieu thereof) G. O. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 13 Weights, grain loading G. O. No. 57 Western railroads, region G. O. No. 4 Wheel-shop employees (G. O. No. 27, Sup. No. 4, Art. I, sec. No. 1 and 1-B) Interp. 3 to G. 0. No. 27 and to Sup. No. 4, Addenda Nos. 1 and 2, Interp. No. 1, and Amendment No. 1 thereto Willcox, William R. , Railroad Wage Commission G. O. No. 5 Winchell, B. L. , agreement between regional directors and labor unions . G. O. No. 53 Work involving charges to capital account not in excess of $25,000 (amendment to par. 5, G. O. No. 12) G. O. No. 12, Sup. No. 1 Work involving charges to capital at^count of $1,000 or more and $10,000 or more G. O. No. 12, Sup. No. 1 Working conditions, inequalities, American Railway Express Co., investigated by Board of Railroad Wages and Working Conditions. . . G. O. No. 27, Sup. No. 9 Working conditions, overtime, rates of pay for certain employees (superseding G. O. No. 27 and in lieu thereof) G. 0. No. 27, Sup. No. 10 G. O. No. 27, Sup. No. 11 G. O. No. 27, Sup. No. 13 Working conditions and pay rates for clerical forces and certain other employ- ees G. O. No. 27, Sup. No. 7 Yard engineers, firemen, conductors, foremen, brakemen, helpers, pay of G. O. No. 27, Interp. 1 INDEX TO CIRCULARS. Abilene & Southern Railway included in Southwestern region July 10, 1918. Cir. No. 35, Sup. No. 1 Accounting department to handle claims for overcharge and relief claims. Cir. No. 49 Accounting, Division of Public Ser\dce and Accounting Cir. No. 1 Acting treasurer for United States Railroad Administration, Angus D. Mc- Donald Cir. No. 19 Acting treasurer United States Railroad Administration, L. G. Scott, appoint- ment of - Cir. No. 45 Actuary of United States Raihoad Administration, Theodore H. Price, duties of Cir. No. 27 Adams, A. C, Board of Adjustment No. 2 Cir. No. 38 Additions, betterments, financial needs, carriers to report in duplicate. . Cir. No. 25 Adjustment Board No. 1 Cir. No. 39 Adjustment Board No. 1, organization of Cir. No. 22 Adjiistment Board No. 2, organization of Cir. No. 38 Adjustment Board No. 3, organization of Cii-. No. 65 Adjustment of fire losses Cir. No. 67 Advisory Committee of Coastwise Steamship Line, creation of Cir. No. 23 Advisory Committee to cooperate with Insurance and Fire Protection Section of Finance and Purchases Division; members, R. M. Bissell, Charles E. Mather, D. R. McLennan, A. M. Schoen Ch-. No. 54 Agency of United States Railroad Administration, Bureau for Safe Transporta- tion of Explosives and Other Dangerous Articles Cir. No. 63 Agreements, property valuation, fire losses Cir. No, 67 Aishton,R. H., regional dire<"torof Northwestern Region, appointment of. Cir. No. 33 Akron & Barberton Belt Railroad added to Eastern Region July 10, 1918. . Cir. No. 41 Akron Union Passenger Depot Co. added to Eastern Region July 10, 1918. Cir. No. 41 Alabama & Vicksburg Railway added to Southern Region Cir. No. 42 Allegheny Region created, office Philadelphia Cir. No. 28 Allegheny Region, railroads included July 10, 1918 Cir. No. 28, Sup. No. 1 Allegheny Region, railroads transferred to, from Eastern Region Cii". No. 66 Allegheny Region, railroads transferred from Eastern Region Cir. No. 68 Alton & Southern Railway included in SouthAvestern Region July 10, 1918 Oir. No. 35, Sup. No. 1 American Railway Association, Commission on Car Service Cir. No. 2 Appointment, Charles A. Lutz, treasurer United States Railroad Administration, vice L. G. Scott, resigned Cir. No. 62 Appointment of L. G. Scott, acting treaeurer United States Railroad Adminis- tration Cir. No. 45 Arizona Eastern Railroad Co. included in Central Western Region July 10, 1918 Cir. No. 34, Sup. No. 1 Arrests, for thefts <''ir. No. 14 Ashland Coal