APPENDIX R. TRANSPORTATION ACT, 1920.1 [Public-No. 152-66th Congress.] AN ACT to provide for the termination of Federal control of railroads and systems of transportation; to provide for the settlement of disputes between carriers and their employees; to further amend an Act entitled "An Act to regulate commerce, approved February 4, 1887, as amended, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. Section 1. TITLE I.-DEFINITIONS. This Act may be cited as the "Transportation Act, 1920.'' Sec. 2. When used in this Act The term "Interstate Commerce Act" means the Act entitled "An Act to regulate commerce," approved February 4, 1887, as amended; 1 With the exception of amendments to certain sections of the Act to Regulate Commerce (appendix A, supra) and contained in title 4 of the Transportation Act, the duties and liabilities of carriers to shippers and employees, as discussed and expounded in this treatise on "Federal Liabilities of Carriers" have not been affected or changed by the enactment of the Transportation Act. The provisions of the Carmack Amendment as amended by the Cummins Amendments (sections 305 to 348, inclusive, supra), the Federal Bill of Lading Law (sections 349 to 351, inclusive, supra), the Federal Employers' Liability Act (sections 413 to 718, inclusive, supra), the Federal Safety Appliance Acts (sections 719 to 891, supra), Federal Hours of Service Act (sections 892 to 922, supra), Federal 28-Hour Live Stock Law (sections 923 to 930, supra), Federal Boiler Inspection Act (sections 931 to 947, supra) and other laws of similar character affecting interstate carriers by railroad, are not in any way af fected or amended by the Transportation Act, 1920. The primary purpose of the enactment of the Act of Congress officially known as the Transportation Act. 1920, approved February 28, 1920, was to provide for the termination of federal control of railroads under the Federal Control Act, approved March 21, 1918 (appendix D, supra). Title II of the Transportation Act deals with the adjustment of matters between the Government and the individual railroad companies arising while the Government operated the railroads. Title III deals with the settlement of disputes between carriers and their employes concerning wages and working conditions after the termination of federal control. Title IV contains amendments to the various sections of the Act to Regulate Commerce, approved February 4, 1887, as amended (see appendix A, supra). Title V contains miscellaneous provisions. 2031 2 Control Carriers Appendix—1. The term "Commerce Court Act" means the Act entitled "An Act to create a commerce court, and to amend an Act entitled 'An Act to regulate commerce,' approved February 4, 1887, as heretofore amended, and for other purposes, "approved June 18, 1910; The term "Federal Control Act" means the Act entitled "An Act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes,'' approved March 21, 1918, as amended; The term "Federal control" means the possession, use, control, and operation of railroads and systems of transportation, taken over or assumed by the President under section 1 of the Act entitled "An Act making appropriations for the support of the Army for the fiscal year ending June 30, 1917, and for other purposes, ," approved August 29, 1916, or under the Federal Control Act; and The term "Commission" means the Interstate Commerce Commission. TITLE II.-TERMINATION OF FEDERAL CONTROL. Section 200. (a) Federal control shall terminate at 12.01 a. m., March 1, 1920; and the President shall then relinquish possession and control of all railroads and systems of transportation then under Federal control and cease the use and operation thereof. (b) Thereafter the President shall not have or exercise any of the powers conferred upon him by the Federal Control Act relating (1) To the use or operation of railroads or systems of transportation; (2) To the control or supervision of the carriers owning or operating them, or of the business or affairs of such carriers; (3) To their rates, fares, charges, classifications, regulations, or practices; (4) To the purchase, construction, or other acquisition of boats, barges, tugs, and other transportation facilities on the inland, canal, or coastwise waterways; or (except in pursuance of contracts or agreements entered into before the termination of Federal control) of terminals, motive power, cars, or equipment, on or in connection with any railroad or system of transportation; (5) To the utilization or operation of canals; (6) To the purchase of securities of carriers, except in pursuance of contracts or agreements entered into before the termination of Federal control, or as a necessary or proper incident to the adjustment, settlement, liquidation and winding up of matters arising out of Federal control; or (7) To the use for any of the purposes above stated (except in pursuance of contracts or agreements entered into before the termination of Federal control, and except as a necessary or proper incident to the winding up or settling of matters arising out of Federal control, and except as provided in section 202) of the revolving fund created by such Act, or of any of the additions thereto made under such Act, or by the Act entitled "An Act to supply a deficiency in the appropriation for carrying out the Act entitled 'An Act to provide for the operation of transportation systems while under Federal control, for the just compensation of their own ers, and for other purposes,' approved March 21, 1918," approved June 30, 1919. (c) Nothing in this Act shall be construed as affecting or limiting the power of the President in time of war (under section 1 of the Act entitled "An Act making appropriations for the support of the Army for the fiscal year ending June 30, 1917, and for other purposes,' approved August 29, 1916) to take possession and assume control of any system of transportation and utilize the same. GOVERNMENT-OWNED BOATS ON INLAND WATERWAYS. Sec. 201. (a) On the termination of Federal control, as provided in section 200, all boats, barges, tugs, and other transportation facilities, on the inland, canal, and coastwise waterways (hereinafter in this section called "transportation facilities'') acquired by the United States in pursuance of the fourth paragraph of section 6 of the Federal Control Act (except the transportation facilities constituting parts of railroads or transportation systems over which Federal control was assumed) are transferred to the Secretary of War, who shall operate or cause to be operated such transportation facilities so that the lines of inland water transportation established by or through the President during Federal control shall be continued, and assume and carry out all contracts and agreements in relation thereto entered into by or through the President in pursuance of such paragraph prior to the time above fixed for such transfer. All payments under the terms of such contracts, and for claims arising out of the operation of such transportation facilities by or through the President prior to the termination of Federal control, shall be made out of moneys available under the provisions of this Act for adjusting, settling, liquidating, and winding up matters arising out of or incident to Federal control. Moneys required for such payments shall, from time to time, be transferred to the Secretary of War as required for payment under the terms of such contracts. (b) All other payments after such transfer in connection with the construction, utilization, and operation of any such transportation facilities, whether completed or under construction, shall be made by the Secretary of War out of funds now or hereafter made available for that purpose. (c) The Secretary of War is hereby authorized, out of any moneys hereafter made available therefor, to construct or contract for the construction of terminal facilities for the interchange of traffic between the transportation facilities operated by him under this section and other carriers whether by rail or water, and to make loans for such purposes under such terms and conditions as he may determine to any State whose constitution prohibits the ownership of such terminal facilities by other than the State or a political subdivision thereof. (d) Any transportation facilities owned by the United States and included within any contract made by the United States for operation on the Mississippi River above Saint Louis, the possession of which reverts to the United States at or before the expiration of such contract, shall be operated by the Secretary of War so as to provide facilities for water carriage on the Mississippi River above Saint Louis. (e) The operation of the transportation facilities referred to in this section shall be subject to the provisions of the Interstate Commerce Act as amended by this Act or by subsequent legislation, and to the provisions of the "Shipping Act, 1916," as now or hereafter amended, in the same manner and to the same extent as if such transportation facilities were privately owned and operated; and all such vessels while operated and employed solely as merchant vessels shall be subject to all other laws, regulations, and liabilities governing merchant vessels, whether the United States is interested therein as owner, in whole or in part, or holds any mortgage, lien, or interest therein. For the performance of the duties imposed by this section the Secretary of War is authorized to appoint or employ such number of experts, clerks, and other employees as may be necessary for service in the District of Columbia or elsewhere, and as may be provided for by Congress. SETTLEMENT OF MATTERS ARISING OUT OF FEDERAL CONTROL. Sec. 202. The President shall, as soon as practicable after the termination of Federal control, adjust, settle, liquidate, and wind up all matters, including compensation, and all questions and disputes of whatsoever nature, arising out of or incident to Federal control. For these purposes and for the purpose of making the payments specified in subdivision (a) of section 201, all unexpended balances in the revolving fund created by the Federal Control Act or of the moneys appropriated by the Act entitled "An Act to supply a deficiency in the appropriation for carrying out the Act entitled 'An Act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes,' approved March 21, 1918," approved June 30, 1919, are hereby reappropriated and made available until expended; and all moneys derived from the operation of the carriers or otherwise arising out of Federal control, and all moneys that have been or may be received in payment of the indebtedness of any carrier to the United States arising out of Federal control, shall be and remain available until expended for the aforesaid purposes; and there is hereby appropriated for the aforesaid purposes, out of any money in the Treasury not otherwise appropriated, $200,000,000 in addition to the above, to be available until expended. COMPENSATION OF CARRIERS WITH WHICH NO CONTRACT MADE. Sec. 203. (a) Upon the request of any carrier entitled to just compensation under the Federal Control Act, but with which no contract fixing or waiving compensation has been made and which has made no waiver of compensation, the President: (1) shall pay to it so much of the amount he may determine to be just compensation as may be necessary to enable such carrier to have the sums required for interest, taxes, and other corporate charges and expenses referred to in paragraph (b) of section 7 of the standard contract between the United States and the carriers, accruing during the period for which such carrier is entitled to just compensation under the Federal Control Act, and also the sums required for dividends declared and paid during the same period, including, also, in addition, a sum equal to that proportion of such last dividend which the period between its payment and the termination of the period for which the carrier is entitled to just compensation under the Federal Control Act bears to the last dividend period; and (2) may, in his discretion, pay to such carrier the whole or any part of the remainder of such estimated amount of just compensation. (b) The acceptance of any benefits by a carrier under this section(1) shall not deprive it of the right to claim additional compensation, which, unless agreed upon, shall be ascertained in the manner provided in section 3 of the Federal Control Act; but (2) shall constitute an acceptance by the carrier of all the provisions of the Federal Control Act as modified by this Act, and obligate the carrier to pay to the United States, with interest at the rate of 6 per centum per annum from a date or dates fixed in proceedings under section 3 of the Federal Control Act, the amount by which the sums received on account of such compensation, under this section or otherwise, exceed the sum found due in such proceedings. REIMBURSEMENT OF DEFICITS DURING FEDERAL CONTROL. Sec. 204. (a) When used in this section— The term "carrier'' means a carrier by railroad which, during any part of the period of Federal control, engaged as a common carrier in general transportation, and competed for traffic, or connected, with a railroad under Federal control, and which sustained a deficit in its railway operating income for that portion (as a whole) of the period of Federal control during which it operated its own railroad or system of transportation; but does not include any street or interurban electric railway which has as its principal source of operating revenue urban, suburban, or interurban passenger traffic or sale of power, heat, and light, or both; and The term "test period" means the three years ending June 30, 1917. (b) For the purpose of this section Railway operating income or any deficit therein for the period of Federal control shall be computed in a manner similar to that provided in section 209 with respect to such income or deficit for the guaranty period; and Railway operating income or any deficit therein for the test period shall be computed in the manner provided in section 1 of the Federal Control Act. (c) As soon as practicable after March 1, 1920, the Commission shall ascertain for every carrier, for every month of the period of Federal control during which its railroad or system of transportation was not under Federal operation, its deficit in railway operating income, if any, and its railway operating income, if any, (hereinafter called "Federal control return''), and the average of its deficit in railway operating income, if any, and of its railways operating income, if any, for the three corresponding |