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f. Transportation.-Transportation facilities, including rail, highway, inland waterways, pipe lines, and airways, will operate under. the management of their own leaders, as directed by the Administrator of War Industry. The principal measures available to the latter to insure the necessary coordination in use and operation are the establishment of priorities and embargoes. The Interstate Commerce Commission will continue to exercise its statutory regulation.

1. General.

SECTION B.-ORGANIZATIONAL PLANS

Broad plans for industrial mobilization take cognizance of the genius of American Government and the popular concept of the responsibilities and duties devolving upon the executive branch in time of war. They have been developed on the following basic considerations:

a. Control of industry in war is a function of the President acting under the authority accorded him by the Constitution, by Congress, and by public opinion.

b. The size and the special and emergency nature of the task of coordinating American industrial effort demand a special organization to be made available to the President promptly upon the outbreak of

war.

c. Plans must be practical rather than theoretical. In the interests of national morale they must operate justly and distribute war's burdens as equitably as practicable.

d. Emergency measures become effective primarily through the support of public opinion. Justice and fairness, supplemented by strong and intelligent leadership, will be more effective than arbitrary regulations, no matter by whom promulgated.

In the hands of a war-time President there is placed by the Constitution, by Congress, and by public opinion, a vast responsibility and a corresponding authority. His personal leadership must make itself felt forcibly and instantaneously from the seat of government in Washington to the remotest hamlet of the country. A smoothworking organization, specially designed for the unusual and emergency tasks that will develop, is essential.

The existing Cabinet departments are not adaptable to the performance of these duties. Their functions are specifically defined by law and custom and are not directly related to any of the activities which must be undertaken by the central industrial control in war. In general, they are overburdened by their normal peace-time functions. Several of the more important departments exist to serve particular classes, both in peace and war. It would be unfair to expect them to exercise emergency restrictive control over the people that they were created to serve. The changes required in our institutions to make use of the Cabinet departments as control organizations in war would be immensely greater than those necessary if a temporary organization is created especially for the emergency.

The controls and functions under discussion are not and should not be exercised in peace. The emergency organization would automatically terminate after the war. If these controls were exercised by a Cabinet department, they might be continued after the end of the war to the great detriment of the country.

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The greatest objection to the use of Cabinet departments for war control is the difficulty of collecting all the scattered agencies and authorities into a focus and directing them toward the accomplishment of a definite purpose.

The existing Cabinet departments would, of course, continue to operate in war as they do in peace.

2. Organization of the Executive Branch of the Government of the United States.

a. General. The chart facing this page shows the agencies through which the President will exercise those functions which are peculiar to his office in war time and which are considered essential to the successful prosecution of the war effort. At the same time, the existing executive structure is maintained for carrying on, under necessary restrictions, the usual statutory duties. Full use is made of those departments which in peace time have been granted special powers for use during periods of emergency and of those whose peace-time functions are of the same nature as those to be performed during an emergency. Thus the Interstate Commerce Commission, the Federal Reserve Board, the Federal Trade Commission, and various bureaus of the several executive departments habitually perform duties which will be extremely important functions of war-time control.

Special agencies are shown for those activities which pertain strictly to the mobilization of resources for the prosecution of war and which tend toward a further restriction of personal liberties and of private initiative in commercial and industrial pursuits. This policy is generally conceded as the most practicable one, especially from a political standpoint, since the agencies created thereby may be quickly demobilized and existing agencies may take up their normal peacetime functions with a minimum of delay and unhampered by extraneous powers and duties not appropriately a part of the normal Federal system.

President Wilson made the following statement in this respect when advocating the passage of the Food Control Act in 1917: It is proposed to draw a sharp line of distinction between the normal activities of the Government represented in the Department of Agriculture in reference to food production, conservation, and marketing, on the one hand, and the emergency activities necessitated by the war in reference to the regulation of food distribution and consumption on the other. All measures intended directly to extend the normal activities of the Department of Agriculture in reference to production, conservation, and the marketing of farm crops will be administered, as in normal times, through that Department, and the powers asked for over distribution and consumption, over exports, imports, prices, purchases, and requisitions of commodities, storing and the like, which may require regulation during the war will be placed in the hands of a commissioner of food administration, appointed by the President and directly responsible to him" (W.I.B. Bulletin No. 3, p. 47).

President Hoover's opinions in respect to organization and mobilization of industry and of the civil population generally, in war, are set forth in his letter of April 1924, to the House Committee on Military Affairs and published in House Document No. 271, Seventy-second Congress.

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