New-York tribune., 1918-07-19
Say Govt Control
Contract Threatens
Country's Credit
Security Holders Commit
tee of 20 Condemns
Tentative Draft

Resolutions to the effect that the
contract for Federal control of rail-
roads in the form of the tentative draft
submitted by government representa-
tives would not only threaten the in
tegritv of the investment Of railroad
security owners, but also the credit
stability of the country, were passed
unanimously at a meeting held yester-
day by the Financial Committee of
Seventy Of the National Association of
Owners of Railroad Securities. Mem
bcrs Of the committee IN attendance
represented twenty-one cities and
twenty states. Chairman S. Davies
Warfield, president of the Continental
Trust Company OF Baltimore. pre-
sided, and there were many other
prominent bankers at the meeting. The
resolutions adopted were as follows:
"Resolved, That the action OF the
sub-eXecutive committee and the spe-
clal committee of this association, rep
resented by the delegation attending
the meeting Of the Railway Execu-
tives' Advisory Committee, held at the
Grand Central Terminal, on July IL,
as presented in the resolution then
passed by them is hereby approved and
confirmed, and that this committee re-
CARDS the contract in its present form
forth in the letter from the president
of the association to 7. Dewitt Cuyler,
chairman of the Railway Executives
Advisory Committee, dated July II.
Resolved, that in the judgment of
the financial committee of the Ma
tional Association of Owners of Rail
road Securities the amendments to the
contract embodied in the document
this day considered by this committee
should be insisted upon and the two
committees which have been conduct
ing the negotiations with the repre-
scntativcs of the government are here
by requested to take up further nego-
tlations on these lines with the rep
rcsentatives of the Director General
and in such other directions as the
committee may see fit.
"Resolved, that in the Judgment Of
this committee the execution by the
railways of contract in the form
proposed in the tentative draft sub
mltted by, the government representa-
tlves would not only threaten the in
tegrity of the investment of the rail
road security owners, but also the
credit stability of the country, and
that such action should be prevented.
Resolved That this committee as
Committee of the Whole request, and
If possible secure. a hearing before the
United States Railroad Administration
IN such directions as may be deemed
feasible for the purpose of presenting
to these authorities the dangers to the
financial credit of the railroads of the
country involved in the execution of
the contract in its present form.
Resolved, That a copy of these reso-
lutlons be sent to the directors and
executives of the various railroads
over the names of this committee"
Authorization was gwen to make
necessary arrangements to Immediately
carry out the object Of the resolutions.
The National Association of Owners
of Railroad Securities represents
s5.0oo,00O,000 of holdings in the secu-
rites OF common carriers, and M War
field had stated previously that the
Federal control contract as it now
stands is not satisfactory to invest /
ment interests.
The meeting held yesterday was at
tended by Samuel Untermyer, 3. II. !
lnness Brown and the Hon. Lndley NJ !
Garrison as counsel, besides the follow
ing named:
Gordon Abbott, chairman of board. Old /
Colony Trust Company; Reginald Fos-
ter, representing Alfred d. Foster, pres
idcnt New England Mutual Life Insur-
ance Company, Boston; w. A. Day /
president Equitable Life Assurance So |
clety of the United States; Frederick H |
Ecker, treasurer Metropolitan Life In +
surance Company; George Edward Ide,
president Home Life Insurance Com
pany; Darwin P. Kingsley, president
New York Life Insurance Company;
John J. Pulleyn, president Emigrant In
dustrial Savings Bank; Henry A
Schenck, president Bowery SAVINGS
Bank and representing New York State
Savings Bank Association; Alvin w. !
hrech, president Equitable Trust Com
pany; Gates W. McGerrah, president
Mechancs and Metals National Bank
and president New York Clearing House
ASSOCIATION; ASS c. Y. Rich, vice-president
ana executive manager National City
Bank; Eugene c. r. Thayer, president
Chase National Bank; Mortimer n
3 b5uckner, president New York Trust
Company; Seward Prosser. president
bankers Trust Company; Charles II
Napln, president Guaranty Trust Com |
pany; William B. Joyce president Ma
tional Surety Company, New York; For
rest r. Dryden, president Prudential In
Surance Company of America; Fred |
1i.ck r. "; EgAer, vice president Fidelity
rust Company, Newark, N. j.; A. A. !
Jackson, vice president Girard Trust
company; George K. johnson, presi-
dent Penn Mutual Life Insurance Com
pany; j. K. McAllister, president Frank
I'm National Bank; G. Stuart Patterson
presldent Western Savings Fund Snci'
ETY., Philadelphia; A. C. Robinson. nres-
loent Peoples Savings and Trust
company. Pittsburgh; Charles G
Homer, Jr, president Savings Bank
or baltlmore, president Second Ma
lional Ii[ Bank and president Baltimore
ole&ring House; Waldo Newcomer
National Exchange Bank /
baltlmore; John G. Walker. presidsnt
Lite Insurance Company of Virginia
Richmond, Va; Z. c. duncan 1rnsi' .i'
deht' MERCHANTS National Bank. Ra-
leigh, n. c.; c. A. Hinsch. nresident
+ tty- third National Bank and nres;,
cent cent American Bankers Association;
Clifford B. Wright, president, Union
Savings Bank and Trust Company. Gin
clnnati, Ohio; Myron T. Herrick. nresi-
dent, Society for Savings in the Citv
OF Cleveland, Ohio; John J. Abbott
" president, representing George NJ.
reynolds, president, Continental and
Commercial Trust and Savings Bank |
Chicago: Mills B. Lane, president, Citi.
zens Southern Bank, Savannah; E.
II. Prlngle, jr., vice president, Bank of
charleston, Charleston, S. c.; II. c.
Quarles, Second Ward Savings Rank
J. G. Lonsdale. president
National Bank of Commerce; John r
Mllllken. representing w H. Lee. presi-
dent Marcha Iaolado