ury Department for communications other than those that go through the mail. The control of insurance will rest with the War Risk Insurance Bureau of the Treasury Department.

ACTIONS OF THE WAR TRADE BOARD.

On October 15 the War Trade Board issued an announcement that all who wished to engage in exportation directly or indirectly will be required to sign an agreement to trade in accordance with the law and agree not to trade with the enemy or ally of the enemy as defined in the law. In order to obtain a license, this agreement must not only apply to the commodities for which the license is made, but must apply in general to any trading by the firm with the enemy or ally of the enemy. Both of these obligations are to be continuing ones. Furthermore the sales or deliveries of articles in the shipments must not be made without the written approval of the United States consul at the place where the sale or delivery is to be made.

On October 24 and November 12, the War Trade Board issued regulations in regard to the exportation of tin plate. The exportation of this commodity will not be allowed except in such a manner as will contribute to the military needs of the nations at war with Germany and her allies. In giving licenses for the exportation of tin plate as food containers, preference will be given to those cases in which evidence is presented that the food is to be for the use of the nations at war with Germany and her allies. These regulations also apply to the exportation of articles other than tin plate which contain tin. No license for the exportation of tin plate will be granted except to manufacturers of the tin plate or to those who have purchased the plate abroad.

On November 2 the War Trade Board announced that the exportation of corn would be prohibited except in cases where satisfactory evidence of the necessity of such exportation is submitted. This is due to the late arrival of new corn, and its effect is therefore temporary.

On November 8 the War Trade Board issued an additional regulation in regard to the exportation of condensed milk, as follows:

No licenses shall be granted for the export of condensed, canned, powdered, or other forms of preserved milk, unless there shall have been filed with the Bureau of Exports a certificate of the manufacturer stating that such milk has been sold directly to the exporter and for export purposes; or unless compliance shall be had with such other regulations as may be determined by the Food Administration.

The purpose of this order is to stop the practice which had arisen of purchasing milk from retail stores for exportation.

Following the proclamations of the President of November 28, the War Trade Board ruled that commodities added to the conservation list shall not be exported after December 1. Exceptions are made for actual war purposes and those which will directly contribute to the prosecution of the war.

On November 30, it was announced that certain articles on the conservation list which had been shipped to Canada and Newfoundland under special license could only be exported by individual license, this ruling to take effect December 2.

In putting into effect the order of the President in regard to imports, the War Trade Board announced that by their control it is believed there will be forthcoming larger quantities of various commodities essential for the successful participation in the war. By placing under control the imports of food products and raw materials it will be possible to get proper distribution of these commodities to essential industries and where necessary at equitable prices.

In conclusion it is stated, "The War Trade Board, conscious of the responsibility they assume in assisting to accelerate and facilitate the Nation's business, are approaching this tremendous task in a spirit of the broadest cooperation and accommodation, the desire being to obviate obstructions and vexatious delays to the fullest possible extent."

A list of 1,600 firms in Latin America has been published by the War Trade Board, with which trading is prohibited. This list is believed to comprise enemies and allies of the enemy and persons, firms, and corporations, who, there is reasonable cause to believe, have acted directly or indirectly for the benefit of the enemy or ally of the enemy.

Other minor actions have been taken by the War Trade Board which are not summarized, but the foregoing statement is sufficient to show that the export and import trade is absolutely controlled by the War Trade Board, both in regard to commodities and the destination of such commodities.

CHAPTER XII.

THE PRIORITY ADMINISTRATION.

The so-called Priority Act is called "An act to amend the act to regulate commerce, as amended, and for other purposes," Public No. 39, 65th Congress. Approved Aug. 10, 1917.

The first paragraph of this act makes it a misdemeanor to knowingly and wilfully obstruct the railway traffic of the United States and prescribes penalties. Also the President is authorized, when the public interests require, to employ the armed forces of the United States to prevent any obstruction or retardation of the mails or the curtailment of interstate or foreign commerce on any railroad of the United States engaged in interstate or foreign commerce. The closing paragraphs of the act cover the subject of priority in shipment. These paragraphs read as follows:

That during the continuance of the war in which the United States is now engaged the President is authorized, if he finds it. necessary for the national defense and security, to direct that such traffic or such shipments of commodities as, in his judgment, may be essential to the national defense and security shall have preference or priority in transportation by any common carrier by railroad, water, or otherwise. He may give these directions at and for such times as he may determine, and may modify, change, suspend, or annul them, and for any such purpose he is hereby authorized to issue orders direct, or through such person or persons as he may designate for the purpose or through the Interstate Commerce Commission.

Officials of the United States, when so designated, shall receive no compensation for their services rendered hereunder. Persons not in the employ of the United States so designated shall receive such compensation as the President may fix. Suitable offices may be rented and all necessary expenses, including compensation of persons so designated, shall be paid as directed by the President out of funds which may have been or may be provided to meet expenditures for the national security and defense.

The common carriers subject to the Act to regulate commerce or as many of them as desire so to do are hereby authorized without responsibility or liability on the part of the United States,

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financial or otherwise, to establish and maintain in the city of Washington during the period of the war an agency empowered by such carriers as join in the arrangement to receive on behalf of them all notice and service of such orders and directions as may be issued in accordance with this Act, and service upon such agency shall be good service as to all the carriers joining in the establishment thereof. And it shall be the duty of any and all the officers, agents, or employees of such carriers by railroad or water or otherwise to obey strictly and conform promptly to such orders, and failures knowingly and wilfully to comply therewith, or to do or perform whatever is necessary to the prompt execution of such order, shall render such officers, agents, or employees guilty of a misdemeanor, and any such officer, agent, or employee shall upon conviction, be fined not more than $5,000, or imprisoned not more than one year, or both, in the discretion of the court.

For the transportation of persons or property in carrying out the orders and directions of the President, just and reasonable rates shall be fixed by the Interstate Commerce Commission; and if the transportation be for the Government of the United States, it shall be paid for currently or monthly by the Secretary of the Treasury out of any funds not otherwise appropriated. Any carrier complying with any such order or direction for preference or priority herein authorized shall be exempt from any and all provisions in existing law imposing civil or criminal pains, penalties, obligations, or liabilities upon carriers by reason of giving preference or priority in compliance with such order or direction.

Under this law the President appointed Judge Robert S. Lovett to administer transportation priority. Judge Lovett has had the cooperation of the carriers, the shippers, and the Interstate Commerce Commission. I am indebted to H. D. Du Groot, of the Interstate Commerce Commission, for the following statement of the relations of the carriers to the Interstate Commerce Commission and the priority work of Judge Lovett.

THE CARRIERS.

At a meeting held in Washington on April 11, 1917, the presidents of the carriers adopted a resolution reading as follows: RESOLVED: That the railroads of the United States, acting through their chief executive officers here and now assembled, and stirred by a high sense of their opportunity to be of the greatest service to their country in the present national crisis, do hereby pledge themselves, with the Government of the United States, with the Governments of the several states, and with one another, that

during the present war they will coordinate their operations in a continental railway system, merging during such period all their merely individual and competitive activities in the effort to produce a maximum of national transportation efficiency. To this end they hereby agree to create an organization which shall have general authority to formulate in detail and from time to time a policy of operation of all or any of the railways, which policy, when and as announced by such temporary organization, shall be accepted and earnestly made effective by the several managements of the individual railroad companies here represented.

A committee of twenty-five was then created, to be known as the Special Committee on National Defense of the American Railway Association, and an executive committee was elected, composed of the following: Fairfax Harrison, President of the Southern Railway System, Chairman, Howard Elliott, New York, New Haven & Hartford Railroad, Julius Kruttschnitt, Chairman Executive Committee, Southern Pacific Company, Hale Holden, President, Chicago, Burlington & Quincy Railroad, and Samuel Rea, President, Pennsylvania Railroad. In addition to the above, a representative of the Interstate Commerce Commission and Daniel Willard, President of the Baltimore & Ohio Railroad, as the representative of the Advisory Commission of the Council of National Defense, were asked to become members ex officio of this Executive Committee. Commissioner Edgar E. Clark was named by the Interstate Commerce Commission to represent it.

Commission on car service.-Operating as an adjunct of the Executive Committee of the Special Committee on National Defense of the American Railway Association (or, as it is now commonly known, the Railroad War Board) is the Commission on Car Service, consisting of eight transportation officers of railroads which cover quite generally the entire United States. This commission is charged with the distribution of freight equipment and the handling of car service matters generally for the railroads as a whole. It sits continuously in Washington and has an extensive organization, both office and field. Sub or local committees of the Commission on Car Service are located at some thirty different points of strategic importance throughout the country to handle local matters and administer locally the policy laid down by the Railroad War Board and its Commission on Car Service.

SHIPPERS' ORGANIZATIONS.

At the request of the Carriers' War Board a meeting was held in Washington May 25, 1917, at which the National Industrial Traffic League adopted a resolution "heartily endorsing the