President Wallace, following the recent battles and the relative speed at which Federal forces have been introduced into recent conflicts with not only the SPA Red Guard and AFUP Minuteman, but an increasingly professional army on both sides. As such, to help reduce the Federal Government's relative disadvantage and to help remove the disunity between private-public ownership, President Wallace would invoke his powers under the National Defense Act of 1916 and hereby nationalizes all public railroads for a temporary basis until the national crisis that is currently affecting America is over. Due to lack of funding however, the just and reasonable compensation are will be paid to the railroad companies for the use/possession of their properties will be limited in scope. As such, on the basis of an annual guaranteed compensation, above accruing depreciation and the maintenance of their properties the net operating income thereof for the one year period ending January 20, 1937 will be paid to the railroad companies.