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Subjects for investigation,

That it shall be the duty of the Council of National Defense to supervise and direct investigations and make recommendations to [650] the President and the heads of executive departments as to the location of railroads Frontier rail- with reference to the frontier of the United States so as to render possible expeditious concentration of troops Highways, and supplies to points of defense; the coordination of military, industrial, and commercial purposes in the loca



domestic pro

tion of extensive highways and branch lines of railroad; Mobilizing re- the utilization of waterways; the mobilization of miliIncrease of tary and naval resources for defense; the increase of duction. domestic production of articles and materials essential to the support of armies and of the people during the interSeagoing ruption of foreign commerce; the development of seagoources of ing transportation; data as to amounts, location, method military sup-and means of production, and availability of military



plies, etc.

supplies; the giving of information to producers and


called by the council or be provided by the rules and regulations adopted by the council for the conduct of its work.


a supply of provisions and other necessaries for the use of the Army, 1780, X Stats. at L. 176 [p. 787]; Act to make more effectual provision for the defense of this State, 1781, id. p. 361 [p. 814].

Rhode Island: See Act for impressing horses, wagons, carts, and cattle, Laws of Rhode Island, January, 1776, p. 237 [p. 819]; Act for providing the army with horses, teams, etc., id. December, 1778, p. 16 [p. 857]; Act repealing the last foregoing act, id. January, 1779, p. 5 [p. 859]; Act to provide teams for the French Army, id. May, 1781, p. 31 [p. 868].

Virginia: See Order for raising and embodying a sufficient force for the defense and protection of this colony, IX Hening's Stats. at L. pp. 9, 24-25 [p. 915]; Act providing against invasions and insurrections, 1777, id. p. 291, 293 [p. 936]; Act to embody militia for the relief of South Carolina, and for other purposes, 1780, X Hening's Stats. at L. 221, 224 [p. 962]; Act for procuring a supply of provisions and other necessaries for the use of the army, 1780, id. p. 233 [p. 963]; Act for recruiting this state's quota of troops to serve in the Continental Army, 1780, id. p. 326. 335 [p. 969]; Act for supplying the Army with clothes, provisions, and wagons, 1780, id. p. 338 [p. 969]; See remedial act to last-named, 1781, id. p. 393 [p. 979] ; * Act for giving certain powers to the governor and council, etc., 1781, 10 Hening's Stats. 413, 414, 416 [p. 982]; Act for adjusting claims for property impressed or taken for public service, 1781, 10 Hening's Stats. at L. 468 [p. 986]; Act for supplying the southern army with wagons and horses, 1781, id. p. 482 [p. 987].

Federal Statutes-Civil War.

See Act to authorize the President of the United States in certain cases to take possession of railroad and telegraph lines, and for other purposes, January 31, 1862, 12 Stats. 334 [p. 1055]; Resolution to declare the meaning of "an Act to authorize the President of the United States in certain cases to take possession of railroad and telegraph lines, and for other purposes," approved January 31, 1862, and to repeal a part of said Act, July 14, 1862, 12 Stats. 625 [p. 1065].

Somewhat on the principle of a compulsory order.

manufacturers as to the class of supplies needed by the military and other services of the Government, the requirements relating thereto, and the creation of relations which will render possible in time of need the immediate concentration and utilization of the resources of the Nation.


That the Council of National Defense shall adopt rules Conduct of and regulations for the conduct of its work, which rules and regulations shall be subject to the approval of the President, and shall provide for the work of the advisory commission to the end that the special knowledge of such commission may be developed by suitable investigation, research, and inquiry and made available in conference and report for the use of the council; and the council may Subordinate organize subordinate bodies for its assistance in special cial work, etc. investigations, either by the employment of experts or by the creation of committees of specially qualified persons to serve without compensation, but to direct the investigations of experts so employed.

bodies for spe

Appropriation for

work, etc.


That the sum of $200,000, or so much thereof as may be necessary, is hereby appropriated, out of any money perimental in the Treasury not otherwise appropriated, to be immediately available for experimental work and investigations undertaken by the council, by the advisory commission, or subordinate bodies, for the employment of a director, expert and clerical expenses and supplies, and for the necessary expenses of members of the advisory commission or subordinate bodies going to and attending of reports, etc. meetings of the commission or subordinate bodies. Reports shall be submitted by all subordinate bodies and by the advisory commission to the council, and from time to time the council shall report to the President or to the heads of executive departments upon special inquiries or subjects appropriate thereto, and an annual report to the Congress shall be submitted through the President, including as full a statement of the activities of the council and the agencies subordinate to it as is consistent with Detall of exthe public interest, including an itemized account of the expenditures made by the council or authorized by it, in as full detail as the public interest will permit: Pro- Proviso. vided, however, That when deemed proper the President without items. may authorize, in amounts stipulated by him, unvouchered expenditures and report the gross sums so authorized not itemized.





[H. R. 15455.] [Public, No. 260.1

September 7, [728] CHAP. 451.-An Act To establish a United States Shipping Board for the purpose of encouraging, developing, and creating a naval auxiliary and naval reserve and a merchant marine to meet the requirements of the commerce of the United States with its Territories and possessions and with foreign countries; to regulate carriers by water engaged in the foreign and interstate commerce of the United States; and for other purposes. [Approved, September 7, 1916. 39 Stats. 728.]

Shipping Act, 1916.

Citizenship requirement.

Receivers and trustees.

In time war transfers, etc., restricted to citizens.


Forfeiture for violation.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,


[729] SEC. 2. That within the meaning of this Act no corporation, partnership, or association shall be deemed a citizen of the United States unless the controlling interest therein is owned by citizens of the United States, and, in the case of a corporation, unless its president and managing directors are citizens of the United States and the corporation itself is organized under the laws of the United States or of a State, Territory, District, or possession thereof.


[730] SEC. 9.

[731] When the United States is at war, or during any national emergency the existence of which is declared by proclamation of the President, no vessel registered or enrolled and licensed under the laws of the United States shall, without the approval of the board, be sold, leased, or chartered to any person not a citi

zen of the United States, or transferred to a foreign Vessels for registry or flag. No vessel registered or enrolled and

sale to be of

fered to Board licensed under the laws of the United States, or owned

before to a foreigner.

The provisions of this Act shall apply to receivers and trustees of all persons to whom the Act applies, and to the successors or assignees of such persons.


by any person a citizen of the United States, except one which the board is prohibited from purchasing, shall be sold to any person not a citizen of the United States or transferred to a foreign registry or flag unless such vessel is first tendered to the board at the price in good faith offered by others, or, if no such offer, at a fair price to be determined in the manner provided in section ten.

Any vessel sold, chartered, leased, transferred, or operated in violation of this section shall be forfeited to the

United States, and whoever violates any provision of this section shall be guilty of a misdemeanor and subject to a fine of not more than $5,000 or to imprisonment of Punishment not more than five years, or both such fine and imprisonment.



SEC. 10. That the President, upon giving to the person Possession by interested such reasonable notice in writing as in his judg- for military or ment the circumstances permit, may take possession, absolutely or temporarily, for any naval or military purpose, of any vessel purchased, leased, or chartered from the board: Provided, That if, in the judgment of the President, an emergency exists requiring such action he may tice." take possession of any such vessel without notice.1


Without no

be made.

Thereafter, upon ascertainment by agreement or other- Payment to wise, the United States shall pay the person interested the fair actual value based upon normal conditions at the time of taking of the interest of such person in every vessel taken absolutely, or if taken for a limited period, the fair charter value under normal conditions for such period. In case of disagreement as to such fair value it shall be determined by appraisers, one to be appointed Ascertainby the board, one by the person interested, and a third by the two so appointed. The finding of such appraisers shall be final and binding upon both parties.

ment of value.


[1168] CHAP. 180.—An Act Making appropriations for the naval March 4, 1917. service for the fiscal year ending June thirtieth, nineteen hun- [I. R. 20632.] dred and eighteen, and for other purposes. [Approved March [Public,, No. 4, 1917. 39 Stats. 1168.]



Be it enacted by the Senate and House of Representa- Naval service tives of the United States of America in Congress assembled,

1 For analogous statutes [covering principle of requisition], see annotations under Sec. 10, Food Control Act, p. 57, infra.


General ex

[1169] AVIATION: For aviation, to be expended under Aviation. the direction of the Secretary of the Navy for procuring, penses. producing, constructing, operating, preserving, storing, and handling aircraft, including rigid dirigibles, and appurtenances, maintenances of air craft stations and experimental work in development of aviation for naval purposes, $5,133,000: Provided, That the sum to be paid Prov 80. out of this appropriation under the direction of the Sec- etc., services. retary of the Navy for drafting, clerical, inspection, and


Securing basic aircraft patents.

Provisos. Arrangements authorized.

Provided, That such arrangements may be made in relation to the purchase of any basic patent connected with the manufacture and development of aircraft in the United States as in the judgment of the [1170] Secretary of War and the Secretary of the Navy will be of the greatest advantage to the Government and to the development of the industry.

Indemnity bond for valid

Provided further, That in the event there shall be ity of patents. pending in court litigation involving the validity of said patent or patents, bond, with good and approved security in an amount sufficient to indemnify the United States, shall be required, payable to the United States, conditioned to repay to the United States the amount paid for said patent or patents in the event said patent or patents are finally adjudged invalid.

Naval emergency fund.

messenger service for aircraft stations shall not exceed $75,000.

To enable the Secretary of War and the Secretary of the Navy to secure by purchase, condemnation, donation, or otherwise, such basic patent or patents as they may consider necessary to the manufacture and development of aircraft in the United States and its dependencies, for governmental and civil purposes, under such regulations as the Secretary of War and the Secretary of the Navy may prescribe, $1,000,000.


[1192] To enable the President to secure the more available for economical and expeditious delivery of materials, equip

specified ob jects.

Amount made immediately

ment, and munitions and secure the more expeditious construction of ships authorized and for the purchase or construction of such additional torpedo boat destroyers, submarine chasers and such other naval small craft, including aircraft, guns and ammunition for all of said vessels and aircraft and for each and every purpose connected therewith, as the President may direct, to be expended at the direction and in the discretion of the President, $115,000,000, or so much thereof as may be necessary, and to be immediately available.

1 For analogous statutes [covering principle of compulsory order] see annotations under Sec. 120, National Defense Act, p. 2, supra, and [covering principle of requisition] annotations under Sec. 10, Food Control Act, p. 57, infra,

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