Memorandum Concerning Section 6. Interstate Commerce Commission

Section 6. Interstate Commerce Commission.“That in time of war or threatened war preference and precedence shall, unpon the demand of the President of the United States, be given over all other traffic for the transportation of troops and materials of war, and carriers shall adopt every means within their control to facilitate and expedite the Military traffic.”Under the authority in Section 6, Interstate Commerce Law, the President may authorize and require the railroads to prefer and expedite the movement of materials of war. Without doubt, “materials of war” fairly covers all articles of traffic affected even indirectly by the exigencies of the war and includes traffic for allied use as well as for the United States Government. Similarly, this power includes use and restriction of use of equipment, movement in trains and all incidents of transportation bearing upon the effective exercise of the power.
Further legislation does not appear to be necessary at this time, unless power is also required to direct movement of traffic, not affected by war conditions/. This is provided in Lever Bill (H. R. 4125) introduced on May 3, 1917.
In either event, the authority to act is given the President to put the power into effect and it is recommended that:-
(1) The Executive Committee be named by the President as Transportation Priority Board.
(2) That Interstate Commerce Commissioner, E. E. Clark (ex-officio member of that Committee) be designated as a member of the Transportation Priority Board.
(3) That orders of the Board directing preferences in transportation be approved by (the Advisory Commission of) the Council of National Defense and will not be operative until so approved.
(4) Such orders may be from time to time modified, revoked or extended by the Transportation Priority Board or by (the Advisory Commission of-) the Council of National Defense.Memo.
Since writing the foregoing, an inspection of Section 10 of the Lever Act, above referred to, shows that it proposes to give authority to make preference orders to the Interstate Commerce Commission acting on direction from the President. For preference movements by water, power goes to the United States Shipping Board. Section 10 of the Lever Act is as follows:“Sec. 10. That the President is authorized, from time to time, to ascertain the needs of the country for preference movements by common carriers, either interstate or intrastate, in order to assure an adequate and continuous supply of necessaries, and, whenever he shall find that any such preference movements are essential for the purpose, he is authorized to transmit his findings, so far as concerns preference movements by common carriers other than by water, to the Interstate Commerce Commission, and, so far as concerns preference movements by common carriers by water, to the United States Shipping Board. Upon receipt of any such findings, the Interstate Commerce Commission, or the United States Shipping Board, as the case may be, is authorized and required, in so far as practicable, to make and enforce appropriate orders and regulations to carry into effect such findings. Every common carrier to which such an order or gregulation is directed or applies shall comply with the same. In case of failure or efrefusal on the part of any common carrier to comply with the terms of any such order or regulation, such carrier shall be liable to a penalty of $1,000 for each offense and $100 for each and every day of the continuance of such offense, which shall accrue to the United States and may be recovered in a civil action brought by the United States. In addition, any person who willfully fails or refuses to comply with the terms of any such order or regulations shall be deemed guilty of a misdemeanor, and, upon conviction thereof shall be punished by a fine not exceeding $10,000 or by imprisonment for not more than two years or both.Under these provisions it would be at least uncertain how far existing provisions of the Interstate Commerce Law requiring hearings, etc., publication of tariffs and carrying preference rulings, etc. might be applicable: if applicable, much delay and time for contention would exist.