The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-13
Representatives of Eighty
Roads Generally Approve
L. S. Rental Measure.
SECURITY OWNERS BALK
Three Committees of Bond
holders Declare Against
Acceptance.

passed resolutions yesterday accepting
IN the main the Governments proposed
railroad draft as exclusively published
in THE SUN July .. The three COM
mittees representing the National Asso-
ciation OF Owners of Railroad Securities
attended the session, but at o subsequent
meeting OF their own passed resolutions
which stated that the contract was I'M
acceptable.
The main conference was attended
BY more than one hundred of the
leading railroad executives and their
counsel and will 60 down in history as
the most important meeting OF railroad
heads and representatives of large own
ers Of railroad securities. Tho meet
ing was held in the board room of the
New York. New Haven and Hartford
Railroad Company at the Grand Central
Station.
Those who attended the session stated
that the members OF the railway execu-
tive committee and the committees rep
resenting the National Association Of
Owners OF Railroad Securities were in
accord with the resolutions passed. but
This did not seem TO be borne out by
the passing Of the resolution by the
National Association Of Owners OF Rail-
road Securities. -..
Thomas De Witt Cuyler, chairman Of
the railway executives advisory COM
mittee, presided at the conference, which
was held behind closed doors. The dis
cussion of the various important points
of the contract was led almost entirely
by A. P. Thorn, counsel for the Railway
Executives Advisory Committee, and
Samuel untermyer, counsel for the Ma
tional Association of owners OF Railroad
Securities.
-,Bondholders Seek Notifications.
One of the railroad executives stated
that the points raised by Mr. Inter
myer were important, but that the rail-
road executives did not want to go as
strong In asking for notifications of
the contract as. requested by the security
owners organizations. which represents
insurance companies, trust companies
and savings banks holding from four
10 FIVE billions of railroad Investments.
Two resolutions were passed by the
Railway Executives Advisory Commit
tee. They were not made public, but
IL Is understood that one accepted, In
the main, the contract and the other
called for the beginning Of negotiations
with representatives of the Government
for provision that the rentals Of
leased roads receive the same protec-
ton which the Government has con-
coded should be accorded to interest on
bonds. 1t was stated that a provision
for protecting the rentals of leased roads
Is of extreme Importance to railroads
where most Of their underlying prop-
critics are leased.
Thomas De Witt Cuyler. chairman Of
the Railway Executives Advisory Com
mittee, at the conclusion Of the con-
ference, which lasted more than four
hours, said:
"To-day's meeting was for the pur-
pose OF receiving the report of our coun-
sci and OF considering che Governments
proposed railroad contract draft. dated
July 5. The committee feels that the
proposed contract is in the main accept
able. There are some points which the
committee desires to discuss further with
The Governments representatives. These
will be taken up as soon as practicable"
The most important of these points.
J.. Is understood. Is that rentals for
leased roads receive the same protection
which the Government already comedies
5Aould be accorded to interest on bonds.
When Mr.. CuyIer adjourned the meet
lug subject to the call of the chairman
representatives of the three committees
- the National Association Of Owners
81 Railroad Securities Immediately called
q meeting OF their own in one corner OF
the large board room and discussed the
statement issued by Mr.. Cuyler. Fol-
owing a short discussion &. Davies War
field. chairman of the three committees.
announced that the following resolutions
,ad been adopted for the National Asso-
citation of Owners Of Railroad Securi-
ttes
Resolved that in the judgment of the
committees representing the National
Association of Owners OF Railroad Sc
cnrties the tentative draft of contract
* July submitted by representatives
n the Government is unacceptable IN
The particulars set forth in the letter of
the committees of July IL addressed to
The chairman of the Railway Executives
Advisory Committee. and that the COM
mlitees representing the association pro-
coed by further negotiation and by APP
peal 10 the Director-General with the
mort 10 secure the modification therein
"esrribed,
'Resolved, that to that end counsel
lor the committees are instructed to
prepare as promptly as possible amend
rents covering the desired changes for
''t consideration OF the committees.
Resolved. that in making such efforts
NE committees cooperate with the Rail-
way Executives Advisory Committee"
sumo o"'ee''""s ""''e"'
One of the objections raised by the
road Securities is opotins from the
a,soI.ation's letter to the Railway
IAeHdtives Advisory Committee. as
follows: .-,I
Section 4 sub (hl prOyides that all