The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-09
LAWYERS AGREE ON
COMPACT WITH US.


- - = -. - -
Continued from First Pooe.
the money used was derived from loans
or otherwise.
The old form Of contract ignored the
question of payment for fuel, material
and supplies obtained from mine or oil
field, or other source of supply owned or
controlled by the company, as we'll as
tho depletion of such sources for the use
Of other railroads. The new contract
Expresses the understanding that the d.
Rotor General is TO pay for such fuel.
material or supplies q price which bears
the same relation to the cost or the cur
rent market value thereof as tho price
charged the company during the three
years ended June 80. 1917, bore 20 the
then cost or market value. In other
words, tho practices Of the companies
ere kept UP and the provision is added
limiting the use on other transportation
systems to cases of emergency. in which
adequate compensation ts provided.
Not Liable TOR War Damage.
Another important clause in the now
contract is the statement that "the d.
IOCLoI-teubIttl Sitall HOt 10 liaplo W liO
company for any loss or damage duo to
the acts of public enemies"
In the case that any railroad property
10 destroyed or damaged otherwise than
by fire or public enemies the Director
General Is required In the new contract
either TO replace or restore IL or reim-
buree the company the value OF the prop
crty destroyed or the amount of the
damage at the time Of the loss, and such
costs are to be charged to annual rail-
way operating expenses and not to the
rental received by the railroad, except IN
cases where the railroad has had the
practice OF spreading such losses over
moro than ono year. In which case the
Director General Is allowed to do like
wise.
IN case the railroad presidents at FRI
days meeting accept tho proposed oon-
tract. and an acceptance will Be urged
by The railroad lawyers. who have con-
Quoted the negotiations in Washington,
their signatures will be attached. and the
blanket contract win be presented to Di,
rector-General McAdoo for his signature
as soon as he reaches Washington. He
In expected to return to that city about
July 30.
Here ia the contract a. It stands IN
completed form ready for acceptance at
fridays meeting:
Preamble ana Recitals.
This agreement made this day of
-, 1918. between William q. McAdoo,
Director General of Railroads, herein
after called the Director General, acting
on behalf Of the United States and the
President, under the powers conferred on
him by the proclanations OF the Presi-
dent hereinafter referred to, and the -
company, a corporation duly organised
under tho laws OF the State (s) OF -,
hereinafter called the company.
Witnesseth that:
(a) Whereas by a proclamation dated
December 26, 1917. the President, act
ing under the powers conferred on him
by the Constitution and laws OF the
United States by the Joint resolutions of
the Senate and House of Represents tives
bearing date April s and December 4.
1917. respectively. and particularly under
tho powers conferred by section / OF
the act OF CONGRESS- approved August 20,
1916. entitled An act making appro-
priations for the support OF the army
for the fiscal year ended June 80, 1917,
and for other purposes" took possession
and assumed control at ~ o'clock noon
on December 2s, 1917, of certain rail-
roads and systems of transportation, in
GLIDING the railroad and transpor tation
system Of the company and ths- appar-
tenances thereof. and directed ,that the
possession. control. operation and .utiliza-
ton of the transportation systems thus
taken shall be exercised by and through
William G. McAdoo. appointed Director
General OF Railroads, and
(b) Whereas the Congress- of IN =
United States by an act approved Meroh
81 1913 hArafp hn
control act, has authorized the Presi-
dent to enter Into agreements with the
companies owning the railroads and sys-
TENS thus taken over for the mainte-
nance and upkeep OF the same during
the period of Federal control, for the
determination OF the rights and obliga-
tons of the parties to the agreement
arising from or out Of Federal control,
INCLUDING the compensation to be re-
ceived or guaranteed, and for other pur-
poseA as in said act more fully set out,
and authorized tho President to exercise
any Of the powers by said act or there
tofore granted him with relation to Fed
eral control through such agencies as he
might determine and
Co Whereas by q proclaim alton dated
March 20, 1913, the President, acting
Under the Federal control act and ali
other powers him thereto enabling au-
thorixed the Director-G General either
personally or through such divisions,
agencies or persons as he may appoint,
and In his own name or In the
name OF such divisions, agencies
or persons, or In the name OF the
President to agree with the carriers,
or any Of them, or with any person In
interest, upon the amount Of compensa-
fion to be paid pursuant to law, and to
iyar ta to
or In the name of the President or in the
name OF the United States such agree
ments as may be necessary and ex-
pedient with the several carriers or other
persons in interest respecting compensa-
ton or any other matter concerning which
1t may be necessary or expedient to deal
and to mako any and all contracts,
agreements or obligations necessary or
eNpedient and to issue any and all orders
which may IN any way be found neoes-
sary and expedient In connection with
the Federal control OF systems of trans
portation. railroads and inland water
ways as fully In all respects as the
President Ia authorised to do. and gener-
ally to do and perform all and singular
the acts and things and TO exercise oil
and singular the powers and duties
which In and by the said act, or any
other act in relation to the subject hereof
the President Is authorized TO do and
perform; and
(d) Whereas the Interstate Commerce
Commission has certified to the President
that the amount of the average annual
railway operating income of tho COM
psny, computed in the manner provided
IN section of the Federal control act
Is - dollars subject to such changes
and corrections as the Commission may