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ment fails.

Secs. 4-6 either the United States or such carrier may file a peti. Determination tion in the Court of Claims for the purpose of determin- Claims oil agteoing the amount 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. Proceedings 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 de- Allowance for termined as hereinbefore provided by agreement or that ments, exten.

sions, etc. 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 while such property is under Federal control.

SEC. 5. That no carrier while under Federal control Dividend ro. 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, however, That such carriers as have paid no regular dividends or no dividends during said period may, with the prior approval Approval os of the President, pay dividends at such rate as the President may determine. Sec. 6. [As amended March 2, 1919.] That the sum

Appropriation;

revolving fund. 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 accounted 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 President may make any additions, betterments, or road extensions, ments an exten 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

.

order better.

sions.

Secs. 6 and 7

losses claimed.

Utilization and

thorized

Advances to of any carrier. He may from said revolving fund advolving fund.

vance to such carrier all or any part of the expense of such additions, betterments, or road extensions, and to provide terminals, motive power, cars, and other necessary equipment so ordered and constructed 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. Settlement for 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.

From said revolving fund the President may expend operation of water facilities au- such an amount as he may deem necessary or desirable

for the utilization and operation of canals, or for the purchase, construction, or utilization 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 agencies and enter into such contracts and

agreements as he shall deem in the public interest. 40 Stat. L.,1290.

No provision of this Act shall be construed to prevent Shippers' rout- the routing of freight by a shipper or consignee over any ing by water to be inland canal or coastwise waterway, or a part way over

such waterway and a part way by rail. In case the shipper or consignee shall so route the freight, no provision of this Act shall be construed as giving power to

change the routing. 40 Stat. L., 451. SEC. 7. That for the purpose of providing funds requiIssue of securi- site for maturing obligations or for other legal and proper ties during Fed

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 unsecured

by mortgage, as the President may first approve as conPresident may sistent with the public interest. The President may, buy and sell se

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

eral control.

curities.

Secs. 7 and 8-10

gress.

execute powers

and

Control of trans

sys

be held by the Secretary of the Treasury, who shall, under the direction of the President, represent the United States in all matters in connection therewith in the same manner as a private holder thereof. The President shall Report to Coneach 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 through agencies. to Federal control through such agencies as he may determine, and may fix the reasonable compensation for the performance of services in connection therewith, and may avail himself of the advice, assistance, and cooperation of the Interstate Commerce Commission and of the Cooperation of members and employees thereof, and may also call upon ment establish: any department, commission, or board of the Government ments. 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 portation Act making appropriations for the support of the Army poses, continued. for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and for other purposes,” approved August twenty-ninth, nineteen hundred and sixteen, shall remain in force and effect except as expressly modified and restricted by this Act; and the President, in addition to the powers conferred by this Act, shall have and is hereby given such other and further powers necessary or appro- of President. priate to give effect to the powers herein and heretofore conferred. The provisions of this Act shall also apply to any carriers to which Federal control may be hereafter extended. SEC. 10. That carriers while under Federal control Carriers subject

to State and Fed. shall be subject to all laws and liabilities as common car- eral laws. riers, 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 now provided by law; and in any action at law or suit in equity No defense as against the carrier, no defense shall be made thereto agency. upon the ground that the carrier is an instrumentality or

Further powers President may initiate rates.

governmenta)

Justness and reasonableness required.

Sec. 10

Actions not transferable

of the Federal Government. Nor shall any such to

agency Federal court.

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

party be retransferred to the court in which it was No 112.00 originally instituted. But no process, mesne or final, trolled property. 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, regulations, and practices shall not be suspended by the Commission pending final determination.

Said rates, fares, charges, classifications, regulations, and practices shall be reasonable and just and shall take

effect at such time and upon such notice as he may direct, Power of Com- but the Interstate Commerce Commission shall upon com

plaint, enter upon a hearing concerning the justness and reasonableness of so much of any order of the President as establishes or changes any rate, fare, charge, classification, 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 deter

mining any question concerning any such rates, fares, Unified control charges, classifications, regulations, or practices or changes

therein, the Interstate Commerce Commission shall give due consideration to the fact that the transportation systems are being operated under a unified and coordi

nated national control and not in competition. Findings After full hearing the Commission may make such

findings and orders as are authorized by the Act to regulate commerce as amended, 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 President to be defray the expenses of Federal control and operation considered.

fairly chargeable to railway operating expenses, and also to pay railway tax accruals other than war taxes, net rents for joint facilities and equipment, and compensa

mission to pass

upon rates.

to be considered.

and order by Commission.

Certificate of

Secs. 11 and 18

lations of Act.

tion 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 Penalty for Vio 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 with or impede the possession, use, operation, or control of any railroad property, railroad, or transportation system hitherto or hereafter taken over by the President, or shall knowingly violate any of the provisions of any order or regulation 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 Each Indepenconstituting a violation of, or a failure to observe, any of a separate offense. 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- Embezzlement, ment of money or property derived from or used in con- der Federal nection 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. Prose- Prosecutions to cutions 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.

SEO. 12. That moneys and other properties derived Moneydofrom the operation of the carriers during Federal control States property. 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

or

State laws.

district courts.

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