The sun., 1918-07-10
RAILROAD CONTRACT.
MAY GO TO WILSON
Group Of Stockholders Are Ex-
pected to Force President
to Be Arbiter.
WILL DECIDE ON FRIDAY
Five Of Seven Points in Draft
of Document Said to Be
Contrary to Facts.
WILL DECIDE ON FRIDAY


controversy between the Railroad Ad-
ministration and the various associations
for protection OF railroad security holders
indicated that President Wilson would
become final arbiter. Although the new
contract has the approval OF the ma
jorty OF the railway executives and
their counsel the opposition which has
sprung up following the disclosure OF
the final draft OF the contract In THE
Sun yesterday morning may force the
railroad executives at their meeting here
on Friday to technically dlsapprove the
agreement and thereby place It in the
hands OF the President in order to avoid
long drawn out litigation.
This was the consensus Of opinion veg
terday of a majority of the railroad ex-
ecutlves. who will meet In the Grand
Central Terminal on Friday to give
either the final approval or disapproval
OF the contract. The contract az a whole
was declared to be satisfactory by these
interests and they had hoped to be able
to settle all differences at this meeting.
but on account OF opposition 1t is not
believed probable that any definite &C
ton toward approval will be taken. at
approval Of the contract It Is understood
that this faction hopes first, to force the
railway Administration and the Presi-
dent to act quickly in connection with
the contract, and. secondly, to force GER
tain small changes which are not wholly
satisfactory In the present form Of agree
nant.
Opposes the Contract.
no main opposition to the contract in
- nnal form developed yesterday from
me two committees representing the
National Association OF owners of Rail-
road Securities. of which s. Davies War
Sefd II chairman. Before calling a meet
Ing or these committees to consider the
dfaf yesterday afternoon Mr.. warfield
Indicated that the contract would not
be satisfactory to the committees by
issuing the following statement:
There Is apparently a n,isconception
Of the purpose Of the provision of the
contract referred to. While not wishing
TO forecast the action OF the committees
representing railroad security holders,
I may safely state that II will not be
acceptable We would be gratified IL
the present draft OF the contract gave
the companies the assurance enumerated.
Al least Ave Of the seven points men
toned are stated contrary to the facts
as a careful reading OF the printed docu-
ment will show. This is merely the lat
est of many drafts upon which the
parties have been working for months
and does not represent an agreement.
The entire subject is still under nego-
tiation and we are not without hope
that a satisfactory contract may yet be
evolved"
After the committees had been in con-
ference for several hours Mr.. Warfeld
announced last night that no agreement
had been reached with respect to the
contract, and that the meeting had been
adjourned until tomorrow, when he
hoped to make full statement concern
ing the attitude which the committees Of
the National Association OF Owners OF
Railroad Securities would take on the
form of contract submitted by repre-
sentatives OF the Government for final
approval Mr.. Warfield then continued
AS already stated, the position OF the
committees In respect to this contract
will be made known after Thursdays
meeting. l may say, however, that
letter has been addressed to the mem
hers of the National Association of
Owners Of Railroad Securities, enclosing
extracts from an opinion of counsel
dealing with this tentative draft of colt
tract There have also been sent the
names OF financial committee OF
seventy, which will be available for con-
sultation and cooperation with the two
committees which have been taking part
In the pending negotiations in respect to
this contract
Executives' Meeting Friday.
The attitude that the railroad execu-
tlves will take at their meeting on Fri
day concerning the contract was not
announced. 4. De Witt Cuyler, chair
man of the Railway Executives Advis-
ory Committee. or in fact any of the
other members of the committee, would
not discuss the contract yesterday IN
view of the fact that it will not be pre-
8ented formally to them for considera-
ton until Friday. but they expressed
themselves as optimistic over the turn
that the negotiations with the Govern
ment have taken. They added that 1t
now looked as though a working basis
had been reached.
From other sources. however, 1t was
learned that enough OF the executives
lave been sounded to know that their
approval Is assured, and that II any
serious opposition develops ii is likely
that the executives will consider II ad-
visable to sniff the whole matter to the
Railway Administration and thence to
the President for quick settlement At
the meeting Friday more than 125 rep
resentatiyes Of the railroads will be