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applicable statutes, Executive orders and regulations relating to economic stabilization. To the extent deemed practical by him, he may maintain the working conditions which are specified in existing contracts between the carriers and their employees. He shall recognize the right of the workers to continue their membership in labor organizations, to bargain collectively through representatives of their own choosing with the representatives of the owners of the carriers, subject to the provisions of applicable statutes and Executive orders, as to matters pertaining to wages to be paid or conditions to prevail after termination of possession, control and operation under this order; and to engage in concerted activities for the purpose of such collective bargaining or for other mutual aid or protection, provided that in his opinion such concerted activities do not interfere with the operation of the carriers.

7. Except as this order otherwise provides and except as the Secretary otnerwise directs, the operation of carriers hereunder shall be in conformity with the Interstate Commerce Act, as amended, the Railway Labor Act, the Safety Appliance Acts, the Employers' Liability Acts, and other applicable Federal and State laws, Executive orders, local ordinances and rules and regulations issued pursuant to such laws, Executive orders and ordinances.

8. Except with the prior written consent of the Secretary, no receivership, reorganization or similar proceeding affecting any carrier taken hereunder shall be instituted, and no attachment by mesne process, garnishment, execution or otherwise shall be levied on or against any of the real or personal property or other assets of any such carrier, provided that nothing herein shall prevent or require approval by the Secretary of any action authorized or required by any interlocutory or final decree of any United States court in reorganization proceedings now pending under the Bankruptcy Act or in any equity receivership cases now pending.

9. From and after seven o'clock P. M. on the said twenty-seventh day of December, 1943, all properties taken under this order shall be conclusively deemed to be within the possession and control of the United States without further act or notice.

10. Possession, control and operation of any carrier or carriers, or parts thereof, taken under this order shall be terminated by the Secretary as soon as he determines that such possession, control and operation are no longer required to prevent interruption of transportation service.

FRANKLIN D ROOSEVELT

THE WHITE HOUSE,
December 27, 1943, 6 P. M., E. W. Т.

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CHAPTER XI-INTERPRETATIONS

INSERTION IN GOVERNMENT CONTRACTS OF PROVISION REGARDING DISCRIMINATION

CONSTRUCTION OF EXECUTIVE ORDER 9346 THE WHITE HOUSE, WASHINGTON, November 5, 1943.

MY DEAR MR. ATTORNEY GENERAL:

You have brought to my attention the Comptroller General's opinion holding that Executive Order 93461 is directive only and not mandatory in requiring insertion in all Government contracts of a provision obligating the contractor not to discriminate against any employee or applicant for employment on account of race, creed, color, or national origin; and requiring the contractor to include similar contractual provisions in all subcontracts.

There is no need for me to reiterate the fundamental principles underlying the promulgation of the Executive Order,

13 CFR Cum. Supp.

namely, that the prosecution of the war demands that we utilize fully all available manpower, and that the discrimination by war industries against persons for any of the reasons named in the Order is detrimental to the prosecution of the war and is opposed to our national democratic purposes.

I realize the hesitancy of the Comptroller General to withhold payments on Government contracts in which these provisions have not been included where there is doubt as to whether the Order is mandatory. I therefore wish to make it perfectly clear that these provisions are mandatory and should be incorporated in all Government contracts. The Order should be so construed by all Government contracting Agencies.

Very sincerely yours,

FRANKLIN D ROOSEVELT

Honorable FRANCIS BIDDLE,
The Attorney General,
Washington, D. C.

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