The sun., 1918-07-12
RAILROAD LEADERS
CONFER GIN CONTRACT
Plan Action to Be Taken at
Meeting Of Executives
To-day.
COMMITTEES ALSO MEET
Objections to Draft Of Rental
Measure to Be Thrcshed Out
and Sent to Government.
COMMITTEES ALSO MEET

Meetings were held yesterday by tAe
Railway Executives Advisory Committee
representing the railroads and the two
committees representing the National As
ISOLATION of Owners of Railroad Secur.
ties in preparation for the conference
which will be held by railroad executives
to-day on the final contract issued ~
the United States Government for tho
Federal operation Of tho nations rail-.
roads.
To-day's session. which Is to be he'd
at the Grand Central Station, will he
perhaps the most representative rail-
road gathering ever held In the United
States for those present will include
the heads Of the common carriers. tho
Railway Executives Advisory COMMITTEES
and the two committees which represent
the National Association OF Owners Of
Railroad Securities.
In preparation for to-day's session
which will be the most important rat
road conference held in many years. tho
Railway Executives Advisory Committee
held a protracted session at it's Offices
at 81 Broadway yesterday. Although
the conference lasted about three hours
nothing for publication was announced.
but 1t WAS said that whatever had been
decided upon was In anticipation OF TO-
days meeting and would be made known
at that session. With the exception Of
Frank Trumbull all the eighteen mem
bers of the committee are understood
to have attended the meeting.
The two committees representing the
National Association of Owners OF Rail-
road Securities. Of which s. Davies War
field is chairman. together with some o.
the members of the committee OF sew
enty appointed by that association, he'll
a long meeting yesterday at which were
outlined the objections entertained hr
the National Association of Owners %
Railroad Securities. These objections
were tabulated and sent to T. DE WI:
Cuyler. chairman of the Railway Execu-
tives Advisory Committee with the re.
quest that the committee refuse to a.
cept the railroad contract now Cffere
until II has been placed before the
Director-General of Railroads or equally
as high an authority.
Notwithstanding the rumors that 'Na
Railway Executives Advisory Commit
tee and the representatives of the Na.
tional Association of Owners Of Raj
Road Securities differed on the merits o.
the railroad contract, the former hody
yesterday sent an invitation to the con-
mittees representing the latter organ7a-
| tion to attend the conference to be held
to-day. The invitation has been ar-
| copied.
AS a rexult of the decision reached ~,
| the railroad securities committees a
letter approved by these committees at
| the meeting was forwarded to the ~ e.
way executives advisory commute.
stating the position of the security
| holders with respect to the contract
The contract, according to the lstter,
| fails especially in the following pa
| ticulars:
1T strips the comnanv at the ou,ss'
| of every vestige OF right to cornr'atr -
the destruction of its good will AM t's
| ness without compensation. 1t is . Mimi
| blanket warrant to the Govorumsr' %
permits it. in the process Of unify.nr 81.
| railway systems Of the cOuutr'
| abandon the operation OF any portion ~
a transportation system. sewer a"
| cancel its contract agreements erl
| connections divert. disrupt and o-,'r.
| the business that has taken EtUera'.,r,
| and millions to upbuild and 10 hari
| back the physical property. which Is 'Na
mere empty shell of what vas sure!
dered to the Government. stripped ~
everything that was Of value.
"In advance OF the knowledge - to
extent to which the property is thus -
| be disnembered under this unth.Nk1I9
blank power of attorney, the company
is now required to approve all that 73T
be done and TO keep and save tn" Gov
eminent harmless against the destsU''
| tive consequences. If the trustees hold
| ing the securities of these roads wee
to acquesce therein without protest no"
would be rightly held by the courts 70 d
| rigid accountability.
| Nowhere in the legislation Is thori
any justification or excuse for such ar
extraordinary exaction.
ut contains no assurance thai inter
est as heretofore paid Will continue =
be pail
ut contains no assurance that ~ r
ments OF regular dividends Heretofore
paid will he continued"
In concluding the letter says the CO.
tract contains no restrictions uu
amount Of additions and hett'r"' RI
whether for war purposes or road ~
tensions or otherwise) charge.
against the roads funds and Coroora'
property. the amounts so To ne n
pended and charged being left en- ~
to the uncontrolled discretion ol '
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