and Federal control was not to last longer than 21 months after the end of the war. The country was divided into regions, each under a regional director, and methods were devised for rapid transportation of troops and supplies. The roads were returned to private ownership on March 1 1920. On April 11 1918 the important coastwise steamship lines also were placed under control of the Director-General of Railroads. At the latter's suggestion the four large express companies had combined in May 1918 under the name American Railway Express Co. which on Nov. 16 was placed wholly under control of the Railroad Administration.
Authorized by a joint resolution of Congress, dated July 10 1918, the Government assumed control of telegraph, telephone and marine cable systems, under the U.S. Telegraph and Telephone Administration, directed by Postmaster-General Albert S. Burleson. Radio control was already under the Navy Department. The telegraphs and telephones were taken over Aug. 1 1918. Contracts as to compensation were made with various companies, including the American Telephone and Telegraph Co., and the Western Union Telegraph Company. The Postal Telegraph-Cable Co. refused to enter into a contract, but was given compensation. There was considerable opposition to the taking over of the wires, due to the fact that the Postmaster-General was an avowed advocate of Government ownership, and it was surmised that he would use his influence for permanent Federal control. The cables were not taken over until Nov. 16 1918, five days after the signing of the Armistice, an action which aroused much criticism. They were returned to their owners May 3 1919. The telegraphs and telephones were returned Aug. 1 1919.
On Oct. 6 1915 a Naval Consulting Board had been organized, with Thomas A. Edison as president, and after the outbreak of the war it was associated with the Council of National Defense. Through various committees it studied such questions as those connected with life-saving appliances, explosives, mines and torpedos. At the same time many scientists were engaged in research throughout the country under the National Research Council, organized by the National Academy of Sciences with the support of President Wilson.
In order that available capital might be turned into channels contributing to the successful prosecution of the war, two agencies were devised. In Jan. 1918 the Secretary of the Treasury asked the Federal Reserve Board to pass upon all proposed issues of securities that should be referred to it. The Board formed a Capital Issues Committee for this purpose, and all banking institutions were asked to refrain from assisting in the floating of new securities until passed upon by the Committee. In general, approval was given only to such issues as contributed to the winning of the war or to the promoting of national welfare. This committee, however, had no legal status. Accordingly by Act of Congress, April 5 1918, there was created a Capital Issues Committee of the same nature, with authority to investigate and pass upon all issues, with certain specified exceptions, of securities of $100,000 or more. However, it was not empowered to require the submission of such securities to its investigation or to impose acceptance of its decision. The production of non-essentials was discouraged and many doubtful enterprises were repressed. The committee became inactive after Dec. 31 1918. It had investigated issues totalling about $3,800,000,000, of which amount about $900,000,000 had been disapproved. The same Act that created the Capital Issues Committee also created the War Finance Corp., the purpose of which was to encourage production of war essentials by providing funds for approved enterprises. With authorized capital of $500,000,000 furnished by the Government, it was placed under the direction of the Secretary of the Treasury and four associates. Up to Oct. 31 1918, requests for loans had been made amounting to $323,329,000 and loans amounting to $67,716,000 granted. At that time the net earnings of the Corporation had reached $2,169,000. A special War Credits Board was created Nov. 20 1917 for supplying loans to producers of munitions of war, its policy being to supply funds when not available elsewhere. Up to May 1919 loans of about $248,000,000 had been made, of which sum $163,000,000 had been repaid.
By the Espionage Act of June 15 1917 the President was empowered to control exports. A Bureau of Export Licenses was created through which were issued permits for shipments to foreign countries. The object was to prevent, so far as possible, American goods from reaching the enemy. Later this Bureau was placed under the Exports Administrative Board, created Aug. 21 1917. After the passage of the Trading with the Enemy Act of Oct. 6 1917 this Board in turn was merged with the War Trade Board, organized by executive order of Oct. 12 1917, and consisting of representatives of the Departments of State, Treasury, Agriculture, and Commerce; the Shipping Board, and the Food Administration, with Vance McCormick as chairman. The War Trade Board undertook the control of imports as well as exports, and aimed to strengthen the blockade and to injure Germany's trade. With the aid of a Bureau of Enemy Trade a list was prepared of firms throughout the world with whom Americans should not trade. This Enemy Trading List was distributed for guidance among Americans engaged in foreign trade. Trade agreements were made with neutral countries, allowing them to receive American goods under conditions intended to prevent their reëxport to the enemy.
The importance of securing the coöperation of labour was recognized from the first. One of the six members appointed on the Advisory Commission of the Council of National Defense was Samuel Gompers, president of the American Federation of Labor. On April 2 1917 Gompers called a conference at Washington, which was attended by representatives of labour, employers, and social workers. The result was the organization of a Committee on Labor of the Council of National Defense, designed to advise as to the relations between labour and employers during the war. Suggestions were issued through the Council of National Defense and requests made that no changes in existing standards be made without the Council's approval. Labour conditions were investigated, information published, and efforts made to settle disputes without interruption of work. During the summer of 1917 serious labour trouble arose in the west in connexion with the production of such important war materials as copper, lumber, and oil. A special commission, popularly known as the President's Mediation Commission, was appointed by the President, Sept. 19 1917, with William B. Wilson, Secretary of Labor, as chairman, and Prof. Felix Frankfurter, of the Harvard Law School, as secretary and counsel. A thorough study of labour conditions was made and many disputes settled. A report made Jan. 9 1918 formed the basis of all subsequent labour adjustments. In Jan. 1919 the Secretary of Labor called a conference, inviting employers and labour to send five representatives, each side to choose a chairman to preside on alternate days. Plans were formulated for governing relations between employers and employees, recommending, among other things, that the right of collective bargaining should be conceded on both sides; that no change should be made in existing conditions as to the “open” and “closed” shop; that women replacing men should be paid on an equal basis; and that the minimum wage should insure reasonable comfort for the worker's family.
Following a suggestion of the conference there was created, April 9 1918, a National War Labor Board, whose membership, chosen by the Secretary of Labor, was identical with that of the labour conference, and consisted of 12 members. It acted throughout the war as a “supreme court” in settling labour disputes. To supplement the work of this Board there was appointed, May 13 1918, a War Labor Policies Board, intended to be representative of all the Governmental producing agencies, for the purpose of standardizing wages, hours of labour, housing conditions, draft exemption, and employment of women.
A matter of great importance was the recruiting of labour and its directing into necessary industries. After America's entrance into the war several existing services under the Department of Labor were enlarged and new ones created. The U.S. Employment Service, under the Bureau of Immigration, with offices throughout the country, assumed Aug. 1 1917 the task of recruiting unskilled labour for all war industries, excepting farms and railways. Private employment bureaux were closed. Much
