Dahn v. McAdoo

256 F. 549, 1919 U.S. Dist. LEXIS 896
CourtDistrict Court, N.D. Iowa
DecidedApril 16, 1919
DocketNo. 167
StatusPublished
Cited by19 cases

This text of 256 F. 549 (Dahn v. McAdoo) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dahn v. McAdoo, 256 F. 549, 1919 U.S. Dist. LEXIS 896 (N.D. Iowa 1919).

Opinion

REED, District Judge

(after stating the facts as above). [1] The first ground of the demurrer is substantially a repetition of the motions to dismiss the action agaipst both defendants, and, in view of the ¡ruling heretofore made on those motions, needs but little consideration. By the act of Congress approved August 29, 1916, it is provided :

“The President, in time of war, is empowered, through the Secretary of War, to take possession and assume control of any system or systems of transportation, or any part thereof, and to utilize the same, to the exclusion as far as may be necessary of all other traffic thereon, for the transfer or transpor[551]*551tation of troops, war material and equipment, or for sucli other purposes connected with the emergency as may be needful or desirable.” 39 Stat. p-645, c. 418 (Comp. St. § 1974a).

Pursuant to that authority the President on December 26, 1917, issued his proclamation, in which, among other things, it is recited:

“It is hereby directed that the possession, control, operation and utilization of such transportation systems hereby by me undertaken shall be exercised by and through William G. McAdoo, who is hereby appointed and designated Director General of Railroads. Said Director may perform the duties imposed upon him, so long and to such extent as he shall determine, through the boards of directors, receivers, officers and employés of said systems of transportation. Until and except so far as said Director shall from time to time by general or special orders otherwise provide, the boards of directors, receivers, officers and employés of the various transportation systems shall continue the operation thereof in the usual and ordinary course of the business of common carriers in the names of their respective companies.
“Until and except so far as said Director shall from time to time otherwise by general or special orders determine, such systems of transportation shall remain.subject to all existing statutes and orders of the Interstate Commerce Commission, and to all statutes and orders of regulating commissions of the various states in which said systems or any part thereof may be situated. But any orders, general or special, hereafter made by said Director, shall have paramount authority and be obeyed as such.” Comp. St. § 1974a.

By the act of Congress approved March 21, 1918, called the Federal Control Act, it is provided in section 10 thereof:

“Sec. 10. That carriers while under federal control shall he subject to all laws and liabilities as common carriers, whether arising under state or federal laws or at common law, except in so far as may be inconsistent with the provisions of this act or any other act applicable to such federal control or with any order of the President. Actions at law or suits in equity may be brought by and. against such carriers and judgments rendered as now provided by law ; and in any action at law or suit in equity against the carrier, no defense shall be made thereto upon the ground that the carrier is an instrumentality or agency of the federal government. Nor shall any such carrier be entitled to have transferred to a federal court any action heretofore or hereafter instituted by or against it, which action was not so transferable prior to the federal control of such carrier. * * * But no process, mean or final, shall be levied against any property under such federal control.” 40 Stat. p. 451, c. 25 (Comp. St. 1918, § 3115%j).

On October 28, 1918, pursuant to such act of Congress and the proclamation of the President, the Director General promulgated General Order No. SO, which, so far as deemed material, is as follows: :

“Whereas, since the Director General assumed control of said systems of transportation, suits are beiug brought and judgments and decrees rendered against carrier corporations on matters based on caxises of action arising during ftideral control for which the said carrier corporations are not responsible, and it is right and proper that the actions, suits, and proceedings hereinafter referred to, based on causes of action arising during or out of federal control should be brought directly against the Director General of Railroads and not against said corporations:
“It is therefore ordered, that actions at law, suits in equity, and proceedings in admiralty hereafter brought in any court based on contract, binding upon the Director General of Railroads, claim for death or injury to person, or for loss and damage to property, arising since December 31, 1917, and growing out of the possession, use, control or operation of any railroad system of transportation by the Director General of Railroads, which action, suit or proceeding but for federal control might have been brought against the carrier com[552]*552pany, shall be brought against William G. McAdoo, Director General of Railroads, and not otherwise. * * *
“Subject to the provisions of General Orders numbered 18, 18a, and 26, heretofore issued by the Director General of Railroads, service of process in any such action, suit or proceeding may be made upon operating officials operating for the Director General of Railroads, the railroad or other carrier in respect of which the cause of action arises in the same way as service was heretofore made upon like operating officials for such railroad or other carrier company.
“The pleadings in all such actions at law, suits in equity, or proceedings in admiralty, now pending against any carrier company for a cause of action arising since December 31, 1917, based upon a cause of action arising from or out of the operation of any railroad or other carrier, may on application be amended by substituting the Director General of Railroads for the carrier company as party defendant and dismissing the company therefrom.”

It seems entirely clear, therefore, that under the acts of Congress referred to the President was fully empowered in time of war to take possession and' assume control of the entire system or systems of transportation of the United States through the Secretary of War and place them under the control of a Director General of Railroads to manage and operate the same during the period for which possession of them was taken, and that actions or claims for damages arising out of- the operation and control of such systems may be brought and prosecuted to final judgment against the Director General under the orders promulgated by him therefor. Of course the possession and control of the property of the railway systems so placed in the possession, and under the control of, the Director General may not be disturbed or interfered with under judgment or other proceedings against him; but as the judgment, or other process of the court that may be rendered against him, is and will remain under its control, it will not permit its process to interfere with his custody or control of such property.

The reasons assigned in General Order No. SO, that “suits are being brought and judgments and decrees rendered against carrier corporations on causes of action arising during federal control for which the said carriers are not responsible,” is a sufficient and very proper precaution for requiring that such actions and proceedings should be brought, against the Director General that he may properly defend against such actions and not intrust their defense to the carrier corporations.

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Bluebook (online)
256 F. 549, 1919 U.S. Dist. LEXIS 896, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dahn-v-mcadoo-iand-1919.