CIRCULAR No. 5.

WASHINGTON, February 15, 1918. The Marine Section of the Division of Transportation is hereby created, and Mr. W. H. Pleasants is appointed manager with office at Washington, D. C.

The manager of the Marine Section will supervise the operation of the shipping under the control of the director general and will also give special attention to coordinating the relations between all other shipping (including that on the Great Lakes) and the railroads. W. G. McADOO, Director General of Railroads.

CIRCULAR No. 6.

WASHINGTON, February 16, 1918.

I hereby appoint a committee on inland waterways consisting of Maj. Gen. W. M. Black, Chief of Engineers, United States Army, chairman; Mr. Walter S. Dickey, of Kansas City, Mo.; Mr. G. A. Tomlinson, of Duluth, Minn.; Col. Charles Keller, Corps of Engineers, United States Army, secretary.

This committee is to make a prompt investigation and to report as soon as practicable a definite plan describing the extent to which and the manner in which additional use may be made of the internal waterways for the economical and expeditious movement of traffic of the country so as to relieve or supplement the railways under existing war conditions. While the entire waterway and transportation situation is to be scrutinized, only those waterways that will effectively afford national relief shall be included in the plan to be presented. W. G. McADOO,

Director General of Railroads.

CIRCULAR No. 7.

WASHINGTON, D. C., February 19, 1918.

The Safety Section of the Division of Transportation is hereby created, and Mr. Hiram W. Belnap appointed manager, with office in the Interstate Commerce Building, Washington, D. C.

The manager of the Safety Section will have supervision over the safety work on all railroads, utilizing such safety organizations as are already available and suggesting such others as are desirable, in addition to his present duties for the Interstate Commerce Commission as chief of its bureau of safety.

W. G. McADOO, Director General of Railroads.

CIRCULAR No. 8.

WASHINGTON, March 2, 1918. It is represented that numerous railroad employees who are not paid fixed annual salaries have not kept accurate records of their earnings for the calendar year 1917, and therefore find it difficult to make an accurate return under the income tax law. The railroads are required to make to the collector of internal revenue a report as to each employee who received $800 or more for the calendar year 1917. It is therefore requested that you give each employee who does not receive a fixed annual salary, and who is included in the report to the collector of internal revenue as having received $800 or more for the calendar year 1917, a statement as to the amount of compensation which has been or will be shown in such report as having been so received by him, in order to facilitate the making of accurate income tax returns by such employees.

W. G. McADOO, Director General of Railroads.

CIRCULAR No. 9.

WASHINGTON, D. C., March 12, 1918.

The Division of Capital Expenditures is hereby created and Judge Robert S. Lovett is appointed director thereof, with office in the Interstate Commerce Building, Washingtin, D. C.

W. G. MCADOO,

Director General of Railroads.

CIRCULAR No. 10.

WASHINGTON, March 18, 1918.

The question has been raised as to whether the Government ought to pay any part of the expense of the New York offices (including salaries of officers at New York) of railroad companies, except to the extent that such expenses are on account of operating offices properly located at New York; and, on the same principle, as to whether the Government is under any obligation to pay the expenses of offices of any of the companies in any locality devoted to financial and corporate matters as distinguished from matters pertaining to the physical operation of the railroad properties.

Even if it should be decided that the necessary expenses for some of the purposes for which such New York offices, and to some extent similar offices at other places, should be chargeable against the Government, it seems very clear that in many instances the expenses cur

rently so charged are greatly in excess of what is necessary to accomplish the purposes which, according to a reasonable construction, would be chargeable against the Government.

Under the circumstances it is desired that each carrier claiming that any such expense should be chargeable against the Government shall present a statement showing the amount of this expense and what amount, if any, it is claimed should fairly be charged to the Government, and the reasons why the carrier believes such expense is so chargeable. And on and after April 1, 1918, the said expense shall cease to be charged against operating income, except in so far as the same shall be expressly authorized after the facts shall have been considered as provided herein.

W. G. McADOO, Director General of Railroads.

CIRCULAR No. 11.

WASHINGTON, March 23, 1918.

With reference to paragraph 3 of General Order No. 9, carriers will submit to the regional director a statement marked "Nothing to report" for each month in which no changes covered by that paragraph occur.

With reference to paragraph 4 of General Order No. 9, carriers will submit to the Director General and also to the regional director a statement marked "Nothing to report" for each month in which no changes covered by that paragraph occur.

W. G. McADOO,

Director General of Railroads.

CIRCULAR No. 12.

WASHINGTON, March 23, 1918.

Unless and except so far as reasonable showing shall be made to the contrary, the Director General will proceed upon the theory that the totals of accounts "cash," "demand loans and deposits," and "time drafts and deposits," appearing on the railroad company's books at the close of business December 31, 1917, was for railroad purposes and is therefore subject to the control and order of the Director General. If, and to the extent that, the Director General shall find it appropriate, in the mobilization and unification of the resources of the railroad companies, to transfer any such cash from the control of the officers of the company, full accounting provision will of course be made for the protection of the company's rights.

The Director General will entertain any applications which may be made to him to show that any portion of the cash on hand Decem

ber 31 was not for railroad purposes and should not be under the Director General's control.

Carriers subject to Federal control must not make disbursements out of the cash represented by the accounts above designated as of December 31, 1917, except for the following purposes:

(a) The payment of interest maturing up to and including July 1, 1918, upon obligations of the railroad company.

(b) The payment of dividends not in excess of regular rate of dividends during the three years ended June 30, 1917, in the regular installments, according to the established practice of the company, payable up to and including July 1, 1918.

(c) The payment for materials and supplies for railroad use and for other expenses of operation. Operation to include, both upon the debit and credit side, joint facility rents, car hire, and all items of that character which accrue out of the operation of the property. (d) Taxes, including war taxes.

(e) Expenditures for permanent improvements.

Application will be entertained for any payments which the carrier may desire to make out of cash on hand December 31, 1917, for purposes other than those above specified or, as to clauses (a) and (b), at dates beyond July 1, 1918.

W. G. McADOO, Director General of Railroads.

CIRCULAR No. 13.

WASHINGTON, March 25, 1918.

Will you please give the following information:

1. State the total amount, if any, of Liberty loan 3's, and separately of Liberty loan 4's, bought by your company or subsidiaries (a) as investment, (b) for employees.

2. State aggregate amount now held of each of said issues (a) as investment, (b) for employees.

Of amounts of each issue disposed of by you, other than bonds disposed of to employees, please show (a) amounts sold in the market, or through brokers; (b) amounts sold at private sale to investors; (c) prices realized for each lot sold and dates of sale. W. G. McADOO,

Director General of Railroads.

CIRCULAR No. 14.

WASHINGTON, March 26, 1918.

To all railroad officials and employees:

A section for the Protection of Railroad Property and property of shippers in transit has been established in the Division of Law by

the Director General to enforce rigorously the Federal law against theft from cars, stations, sidings, and wharves, and to take all necessary measures in cooperation with carriers to prevent loss from this cause, which in past years has been enormous.

Philip J. Doherty is hereby appointed manager of such section. Full cooperation with this section is required from all officers and employees of the railroads, and special agents or secret service men employed by the carriers are especially required to cooperate with this section, both in preventing and investigating thefts, making arrests, or prosecuting offenders, and railroad attorneys and all other officials are required to give all possible aid.

Anyone having knowledge of any such offense should report the same to the nearest railroad official or to this section in order that indictment of the guilty parties may be had under the Federal law which carries a maximum penalty of 10 years' imprisonment.

Communications should be addressed to Philip J. Doherty, manager, section for Protection of Railroad Property, United States Railroad Administration, Washington, D. C.

Officers and employees must understand that all property being transported by the railroads is in the custody of the United States and they owe an especial duty to guard and protect the same and to report promptly any person who tampers therewith; and the United States looks to the officers and employees to do their duty in this behalf.

W. G. McADOO,

Director General of Railroads.

CIRCULAR No. 15.

WASHINGTON, March 29, 1918.

The Inspection and Test Section of the Division of Transportation is hereby created and Mr. C. B. Young is appointed manager, with office in the Southern Railway Building, Washington, D. C.

The manager of the Inspection and Test Section will have charge of the test and inspection of materials and work in connection with the construction of standard locomotives and cars.

W. G. McADOO,

Director General of Railroads.

CIRCULAR No. 16.

[Corrected.]

WASHINGTON, April 1, 1918.

The Car Repair Section of the Division of Transportation is hereby created, and Mr. J. J. Tatum is appointed manager, with office in Southern Railway Building, Washington, D. C.