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FED ERAL R E SE R V E B AN K O F D A L LA S
F IS C A L . A G E N T O F T H E U N IT E D S T A T E S

Dallas, Texas, February 5, 1943

To All Banking Institutions, and Others Concerned,
in the Eleventh Federal Reserve District:

The Secretary of the Treasury has issued the following general ruling and press state­
ment relative thereto:
“ GENERAL RULING NO. 15 UNDER EXECUTIVE ORDER NO. 8389, as amended,
Executive Order No. 9193, sections 3 (a) and 5 (b) of the Trading with the Enemy Act,
as amended by the First War Powers Act, 1941, relating to Foreign Funds Control.*
(1) Unless authorized by license issued by the Secretary of the Treasury expressly
referring to this general ruling:
(a) No person shall exercise within the United States any right, remedy,
power, or privilege (by self-help, judicial process, or otherwise), directly or
indirectly against or with respect to any Mexican railroad property; and
(b) Any seizure by attachment or otherwise of Mexican railroad property,
and any judgment, decree, lien, execution, garnishment, or other judicial
process against or with respect to such property is null and void.
(2) The provisions of (1) (a) and (1) (b) above shall not apply to claims arising
out of, or with respect to, current repair, maintenance, and similar charges, in connection
with the operation or servicing, within the United States, of Mexican railroad property
on or after the date of this general ruling.
(3) As used in this general ruling, the term “ Mexican Railroad Property” shall
include:
(a) All railroad rolling stock and equipment brought into the United States
from Mexico or acquired in the United States by a railroad in Mexico, and
with respect to which Mexico or a national thereof has an interest;
(b) All earnings, income, or other rights, payable to, or in favor of Mexico
or a national thereof and created by reason of, or otherwise resulting from,
the employment or use of such rolling stock or equipment within the United
States after the date hereof.
RANDOLPH PAUL
Acting Secretary of the Treasury”
February 4, 1943
*Part 132— Sec. 5 (b ), 40 Stat. 415 and 966; Sec.
55 Stat. 838; Ex. Order 8389, April 10, 1940, as
8832, July 26, 1941, Ex. Order 8963, December 9,
9193, July 6, 1942; Regulations, April 10, 1940,

2, 48 Stat. 1; 54 Stat, 179; Public No. 354, 77th Congress,
amended by Ex. Order 8785, June 14, 1941, E x. Order
1941, and Ex. Order 8998, December 26, 1941; Ex. Order
as amended June 14, 1941, and July 26, 1941.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

PRESS STATEMENT
“ The Treasury Department today issued regulations barring all legal and other
proceedings which might interfere with the free and unrestricted use and operation of
Mexican railroad equipment within the United States. This action was taken at the
request of the Government of Mexico, the State Department, the Board of Economic
Warfare, and other interested Government agencies.
“ Treasury officials stated that this action is intended to remove an important bottle­
neck in the transportation of materials from Mexico to the United States. At the present
time there is a large volume of war materials which is brought to the Mexican border on
Mexican freight cars and there unloaded and reloaded into United States freight cars.
This procedure, officials stated, is both time consuming and wasteful of the nation’s war­
time freight car capacity.
“Treasury officials stated that this Government has been negotiating with the Gov­
ernment of Mexico for several months regarding the possibility of materials moving from
Mexico to the United States on Mexican railroad equipment. One of the major stumbling
blocks to this important wartime measure, however, has been the fear that such equip­
ment might be seized by creditors. Unless this factor is eliminated, the war effort will
be impaired and the entire program of direct shipment will be defeated.
“ To meet this wartime necessity, the Treasury Department after full consultation
with the State Department, the Board of Economic Warfare, and the Mexican authori­
ties, today issued General Ruling No. 15. Under this ruling, all Mexican railroad equipment
within the United States is accorded immunity against claimants seeking to attach or
otherwise seize such property. Moreover, under this ruling no legal, equitable, or pos­
sessory interest can be obtained in such rolling stock and equipment by virtue of any
judicial process unless a Treasury license is first obtained.
“ Officials stated that a specific exemption from the immunity granted by this ruling
is made in favor of service and repair charges and other claims arising out of the opera­
tion within the United States of Mexican railroad property on or after the date of this
ruling.
“ It was pointed out that since this property would not otherwise be brought into
the United States, the general ruling works no hardship on American creditors. Also, it'
was stated by Treasury representatives that this ruling protects only Mexican railroad
property, as defined therein, and does not apply to any other assets.
“ It is anticipated that this general ruling will pave the way for immediate and
effective cooperation in getting much needed materials to their ultimate destination with
a minimum of delay and wastefulness.
“ General Ruling No. 15 was issued pursuant to section 5 (b) of the Trading with
the Enemy Act as amended by the First War Powers Act, 1941.”
Yours very truly,
R. R. GILBERT
President


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102