Sec. 10 governmental transferable not 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 agency of the Federal Government. Nor shall any such Actions carrier be entitled to have transferred to a Federal court 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 levy on originally instituted. But no process, mesne or final, trolled property. shall be levied against any property under such Federal control. federally con President may That during the period of Federal control, whenever in initiate rates. 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. reasonableness upon rates. Said rates, fares, charges, classifications, regulations, Justness and and practices shall be reasonable and just and shall take required. effect at such time and upon such notice as he may direct, but the Interstate Commerce Commission shall upon com- Power of Complaint, enter upon a hearing concerning the justness and mission to pass 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 determining any question concerning any such rates, fares, 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- Unified control nated national control and not in competition. After full hearing the Commission may make such findings and orders as are authorized by the Act to regu to be considered. Findings and orders by Commission. Secs. 10 and 11 President to be considered. late commerce as amended, and said findings and orders shall be enforced as provided in said Act: Provided, Certificate of 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 railway 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. Penalty for violations of Act. 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 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 Each indepen- than two years, or both. Each independent transaction dent transaction constituting a violation 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 Embezzlement, the taking or conversion to his own use or the embezzleder Federal or 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 a separate offense. punishment un State laws. Secs. 11 and 12 district courts. hereunder shall be in the district courts of the United Prosecutions in 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. rived are United Accounting, specific appropri SEC. 12. That moneys and other properties derived Moneys defrom 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 the same officers, and the accounting thereof shall be in the same manner and form as before Federal control. manner and form. Disbursements therefrom shall, without further appro- Disbursements priation, be made in the same manner as before Federal made without control and for such purposes as under the Interstate ation. 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 Payment of war for other purposes," approved October third, nineteen hundred and seventeen, or any Act in addition thereto or in amendment thereof, shall be 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 be 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. taxes. Taxes appor tioned. ered into public At such periods as the President may direct, the books Balances cOTshall be closed and the balance of revenues over dis- treasury. bursements 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 of revolving fund. direct. Deficits met out Sees, 13-15 Pending litigation unaffected. 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 eightyseven, 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 Stay of execu- the application of the United States, stay execution of final judgment or decree until such time as it shall deem tion authorized. proper. Termination of SEC. 14. That the Federal control of railroads and Federal control. Relinquishment of systems needed. 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 ratifications of the treaty of peace: Provided, however, That the President may, prior to July first, nineteen hunnot dred 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 or desirable; and the President may at any time during the 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 relinquish 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. State tax and police laws not affected. Exceptions. 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. REIMBURSEMENT FOR MOTIVE POWER AND EQUIPMENT ACT 113 Sec. 1 Emergency character of Act. 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 not expressed or regulation of carriers or the method or basis of the cap- prejudiced. italization thereof. Future policy REIMBURSEMENT OF THE UNITED STATES FOR MOTIVE AN ACT To provide for the reimbursement of the United States for motive power, cars, and other equipment ordered for railroads and systems of transportation under Federal control, and for other purposes. [Nov. 19, 1919.] receive reim in cash, securities, Be it enacted by the Senate and House of Representatives 41 Stat. L., 359. of the United States of America in Congress assembled, That in order to make provision for the reimbursement .of the United States for the sums advanced to provide motive power, ears, and other equipment ordered by the President for the railroads and systems of transportation now under Federal control, herein called " carriers," pursuant to the authority conferred by the second paragraph of section 6 of the Act of March 21, 1918, the President may, upon such terms as he shall deem advisable, President may receive in reimbursement cash, or obligations of any bursement carrier, or part cash and part such obligations, or in his or otherwise. discretion he may accept for such motive power, cars, or other equipment, cash or the shares of stock or obligations, secured or unsecured, of any corporation not a carrier organized for the purpose of owning equipment or equipment obligations, or part cash and part such shares of stock and obligations, and he may transfer to such corporation any obligations of carriers received on account of motive power, cars, or other equipment, and he may execute any instruments necessary and proper to carry out the intent of the second paragraph of section 6 of said Act of March 21, 1918, to the end that title to the motive power, cars, and other equipment so ordered by the President as aforesaid for the carriers may rest in them or their trustees or nominees. President may, In addition to the powers herein and heretofore conferred, the President is further authorized to dispose, in dispose of equip the manner and for the consideration aforesaid, of motive tions of carriers ment and obliga |