In 1916, as part of the Untied States "preparedness" for war, congress passed the Army Appropriations Act of 1916. This act authorized the president to take control of transportation systems during wartime and to create a high-level Council of National Defense charged with determining how best to mobilize the economy for war. The act was signed into law in August of 1916. And no more than 18 months later President Woodrow Wilson, used the act to nationalize the railroads. Railroads were too vital of a tool in moving material and troops for the war effort to allow any interruptions.
It all started with the Adamson Act, which was passed one month after the Appropriations Act. The Adamson Act established an eight-hour work day with additional pay for overtime, for interstate railroad workers. The law covered the engineers, firemen, brakemen and conductors. This was the first federal law that regulated hours of work in private companies. The railroads refused to comply and challenged the act in the highest court of the land. While the act was being challenged, the railroads refused to comply with the law, so the labor unions threatened to strike. But, when the Supreme Court upheld the law, the employers and unions reached a settlement. The success of the labor unions, spurred other railway employees to press similar demands. Just as the United States was preparing for war, it seemed inevitable that the railway employees were heading for a general strike. So on December 26, 1917, exercising the authority granted by the Army Appropriations Act of 1916, President Woodrow Wilson took over the operation of the railroads.
Was Woodrow Wilson looking for an opportunity to take over the Railroads? One year earlier, on December 5 1916, Woodrow Wilson proposed his 6-point plan to avoid any interruptions and settle any conflicts between the railroads and it's employees. This plan included the power to nationalize the railroads.
- Expand the Interstate Commerce Commission so that the Commission may be enabled to deal with the many great and various duties of now put upon it.
- Establish an eight hour day for all railway employees.
- Authorize a group of men, appointed by the president to observe the adoption of the eight-hour day.
- Explicit approval by the Interstate Commerce Commission to allow for an increase in Freight rates to meet additional expenditures.
- Pass a federal law that will require a full public investigation of every dispute before a strike or lockout can be lawfully attempted.
- Give the Executive the power, in case of military necessity to take over portions of the railways of the country as may be required for military use and to operate them for military purposes.
"The country cannot and should not consent to remain any longer exposed to profound industrial disturbances for lack of additional means of arbitration and conciliation which the Congress can easily and promptly supply.Finally, on March 21, 1918 the Railway Administration Act became law, and Wilson's 1917 nationalization order was affirmed. As part of the government takeover, wages were raised, but by law the railroads were guaranteed the average profit of the three preceding years - the highest in railroad history. This guaranty cost the treasury about $750 million, and an additional $300 million more for road maintenance.
And all will agree that there must be no doubt as to the power of the Executive to make immediate and uninterrupted use of the railroads for the concentration of the military forces of the nation wherever they are needed and whenever they are needed."
http://www.presidency.ucsb.edu/ws/index.php?pid=29557
http://www.independent.org/pdf/working_papers/59_government.pdf
https://en.wikipedia.org/wiki/Adamson_Act
https://news.google.com/newspapers?nid=110&dat=19520506&id=qZ5OAAAAIBAJ&sjid=pUIDAAAAIBAJ&pg=6376,226604&hl=en
http://todaysdocument.tumblr.com/post/71411986277/under-way-12281917-from-the-berryman-political
http://www.old-picture.com/american-legacy/004/pictures/President-Woodrow-Wilson-002.jpg
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