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The text of the proclamation follows:
Whereas, the Congress of the United States, in the exercise of 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 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 Government to carry on war against
the Imperial and Royal Austro-Hungarian Government, 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
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 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
transportation 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 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 foregoing
resolutions and statute, and by virtue of all other powers thereto me
enabling, do hereby, through Newton D. Baker, Secretary of War, take
possession and assume control at 12 o'clock noon on the twenty-eighth
day of December, 1917, 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, telegraph
and telephone lines and all other equipment and appurtenances
commonly used upon or operated as a part of such rail or combined
rail and water systems of transportation, 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 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 Railroads.
Said director 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
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 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 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, general
or special, hereafter made by said director shall have paramount
authority and be obeyed as such.
Nothing herein shall be construed as now affecting the possession,
operation and control of street electric passenger railways,
including railways commonly called interurban, whether such railways
be or be not owned or controlled by such railroad companies or
systems. By subsequent order and proclamation, if and when it shall
be found necessary or desirable, possession, control or operation may
be taken of all or any part of such street railway systems, including
subways and tunnels, and by subsequent order and proclamation
possession, control and operation in whole or in part may also be
relinquished to the owners thereof of any part of the railroad
systems 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 agreements for just and reasonable compensation
for the possession, use and control of the 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
appropriate 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 persons
having interests in said systems of transportation or in the profits
thereof, to receive just and adequate compensation for the use and
control and operation of their property hereby assumed.
Regular dividends hitherto declared, and maturing interest upon
bonds, debentures and other obligations, may be paid in due course,
and such regular dividends and interest may continue to be paid until
and unless the said 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 written assent of said director, no attachment
by mesne process or on execution shall be levied on or against any of
the property used by any of said transportation systems, in the
conduct of their business as 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, by general or
special orders, otherwise determine.
From and after 12 o'clock on said twenty-eighth day of December,
1917, all transportation systems included in this order and
proclamation shall conclusively be deemed within the possession and
control of said director without further act or notice, but for the
purpose of accounting said possession and control shall date from 12
o'clock midnight on December 31, 1917.
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, Secretary of War, in
the District of Columbia, this twenty-sixth day of December, in the
year of our Lord one thousand nine hundred and seventeen, and of
Independence of the United States the one hundred and forty-second.