The Birmingham age-herald., 1918-07-19
CONTRACTS WITH
 THE RAILROADS
By HOLLAND


 New York, July -1s.-(Special)-On the whole the railway operating contract, so- called. is heartily commended by rail- way managers and by some of the finan- cial leaders. The only criticism which has been heard when inquiry has been put to those competent to give an opin- ion is thls, that there are a good many special cases which cannot be adeouatslv covered or reached by. this contract. This is not said with critical intent so much as with the hope that Director General AIcAdoo may when he takes final action find some means by which the railroads which come under special cases may be adequately taken care of
 This morning a man who formerly was deemed of high authority in the financia, dlstrict, but who some years ago retired from business, although keeping up his interest as a citizen in financial and railroad managers, said: "The railroad operating contract is better contract than l feared it would be possible for the government, and the railroad officers to perfect. l. should serve to take good care of the railroads, for they need it, and deserve it, and also to meet all of the needs of the government in these days of the war. It should also serve to prepare the way for wise readjustmen. Of the ra.lrcad situation after the war is ended. But there are some special cases not covered by the contract It is not now possible accurately to identify these special cases, but there is feeling among my friends that the government will be remiss if it does not take care Of these so-called special cases. The thing to Ce aimed at in the view of my friends, and l think of railroad managers and or Mir. McAdoo himself is first, ade- quate railroad aid for the government at this time. Second, adequate protection for those who own the railroads-that IS to say, the stockholders. The government has the power to protect the stockhold- CTS, anG it ought to be wisely exercised, and I hope will be-
 When MT. Hartman was upbuilding the Union Pacific railroad system he tound It necessary to make exceptions to general rules, and that was also the case when James J. Hill directed the Great Northern. Commodore Wander bilt when he was constructing the New York Central railway system recognized the necessity of making allowance for special cases which could not be covered by general rule or, in fact, by con- tract entered into by his company with railroad builders or with others.
 However, it is gratifying to know that at least 70 per cent of all the railroad management of the United States are in agreement that this contract is on the whole acceptable There was time not long ago when apprehension prevailed lest it be impossible to prepare a con- tract which would be satisfactory to both the railroads and to the govern ment.
 It was a new proposition which con- fronte1 the railroad officials when they met for the purpose of agreeing with the government upon contract which would be mutually satisfactory and advaa- tageous. The contract itself in It's phraseology and form is spoken of as one of the most admirable agreements both in it's legal form and in it's pi4r- pose, which has ever been entered into by any railroad officials of the United StataS