Louis Brandeis

“ The Ault Case holds that the Director General alone was made subject, by section 10 of the Federal Control Act to the 'liabilities as common carriers, whether arising under state or federal laws or at common law.' To permit an action for injuries suffered during federal control to be brought either against the Southern Company as lessee, or against the North Carolina Company as lessor, would be inconsistent with the provisions of that act. ”

“ On that line an employee was killed in March, 1919-apparently while engaged in intrastate commerce. His administratrix brought, in a court of the state, this action for damages, alleging that the line was then being operated by the Southern as lessee, and that the lessee's negligence in operation caused the injury. Only the lessor, the North Carolina Railroad Company, was made defendant. Its liability was asserted under a local rule by which a railroad corporation is liable for injuries resulting from a lessee's negligence in operation. Logan v. Railroad, 116 N. C. 940, 21 S. E. 959. ”

“ Ct. 447, 65 L. Ed. 790. Thereafter, the liability of carriers during federal control was considered in Missouri Pacific R. Co. v. Ault, 256 U.S. 554, 41 Sup. Ct. 593, 65 L. Ed. 1087.
The government operated this railroad not as lessee but under a right in the nature of eminent domain. It operated through the Director General, not through the Southern Company as agent. ”