The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-08-21
STOCKHOLDERS WANT
RIGHT TO SUE U. 5.
C1nuuuittcc Complains TO Director
General McAdoo About FORM Oh
Contract With Government
EXECUTIVES ARE SATISFIED
tcxtry Effort VIII BE Made 10 Arrive
~ Satisfactory Draft covering
Prints OF Possible Dispute.

washingion, Aug ga brief on
6ehAlf of the railroad stockhotaei g.
represented by the railroad stoch-
holders com mittee. was presented 10
Director General McAdoo and the ran.
road administration today by Samuei
Isntermynr. OF New york. member ana
general counsel for the committee
The brief discusses the tentative
new form OF contract draw by the
legal department of the railroad ao
ninigtration after the first draft had
heen discarded as not satisfactory
either to the railroad administration
or to the executives and stockholders
or the railroad companies
There was liberal discussion in
which all PARTIES interested were rep
resented before the new form OF con
tract was drawn and ii was hoped
that IL might meet early approval, but
Al ia still under discussion by tne
director general and his executive
staff and by The executives of the ran
road companies. the stockholders ana
their committee and their legal ad-
vtsefs.
After Director General McAdoo has
rome over and revised the form OF
contract with the advice of his eNecEi-
i've stan he wall call "get-togetker
ana the stock holders com mittYo in
the hope OF agreeing upon "A form of
contract that will be acceptabis TO the
railroad companies and stockholders,
or TO the great majority interested.
The brief presented by Mr. Inter
myer on behalf OF the Stockholders
committee was held coVndenttal by
the railroad administratiy,n hut 1t was
learned that the principal protest is
against the provision which pledges
the contracting party not to resort
to the courts after entering into the
agreement
that this is the first aud virtually
the sole PURPOSE of the contract and
that unless sYch a provision is IN
corporated ard agreed TO by the CON
tracing par ties the contract VIII be
OF little Taiae and that an open inVi-
tAtion vii lee extended for endless
litigation e
Direckor General Mchdoo holds
that IN err. need he no litigation as a
result ref the government taking over
c0HITpi and operations OF the ran
Il rOaq4s if any points of differences exist
thH car be reconcifed by form Of
c9.nfract entered into by the govern
Inenf and the railroad companies
/The law under which the government
"A took control OF the railroads provides
that the owners of railroad property
may seek redress in the courts Tor
compensation or damage TO property
Ii all points OF difference can be
settled in advance by a contract II
will obyiate the need for litigation OF
any kind.
The railroad companies and the
Il stockholders hold their right to REFUSE
{ TO enter into any contract and to take
their case to court If they SO desire
Y Iii Iii not mandatory that any company
shah sign any ~foryn-of contract except
AZ q voluntary act. For this reason
Director General McAdoo will exhaus
every effort to draw up "a form o
contract satisfactory to all. He In
yites the fullest discussion and seek
information on any provision OF th'
contract that is not fair both 10 the
government and to the railroad com
panies and asks that any seeming IN
justices In the form of contract bt
pointed out in order that they ma,
be remedied In fairness TO all.
II would seem from the attitude o
4 the railroad executives, selected II
represent and protect the corporate
Interests CT the ompanies. that the.
have no objection to offer to the pro
/ vision that will bar litigation.