The sun., 1918-01-14
RAILWAY HEADS
ASK SHOWDOWN
ON US. CONTROL
Ninety Executives Meet in
Secret Here to Discuss
Situation.
THREE BIG PROBLEMS
Demand Will Be Made for
More Light on Financial
Programme.
THREE BIG PROBLEMS

Ninety railroad executives. represent
Ing lit roads. met in secret conference
yesterday In the room Of the board Of
directors Of the New York Central Rail-
road Company and took the nrst steps
toward . programme for q settlement Of
the future management Of the American
roads with the Director General Of Rail-
roads.
The big men Of the railroad world had
three chief problems before them. The
hrst was tho question Of financial ar
rangements to be made with tho Govern
ment The second was the issue Of op-
Grafton while the Government remains in
the saddle. and the third was the fixing
Of some definite time when the roads will
be returned by the Government to their
owners when the necessity for Joint
war operation shall have passed. In
cidently the question Of the relations of
the roads to their employees and the
remuneration to be paid them formed
4 lively topic.
As to this last question. tho matter
has already been passed up to Director
General McAdoo in the form Of q de-
mand Of the employees for more pay.
and this side Of the dilemma Is not
therefore. OF immediate concern to the
magnates excepting in 10 far as II re-
lates to the future. when the roads re-
turn to their owners.
The most important Of the pressing
questions under view related to the
financial arrangements that the various
lines are to make with the Government.
The present programme calls for the
payment OF returns to the roads by the
(ynvArnnAnt Hh~ 80
Of their earnings for the last three years
In addition to this. the current bet
terments and maintenance charges are
to be met by the Government. The Gov
ernment's announced programme was to
taloe up with each road. % q separate
proposition. these financial arrangements
when the Sims bill. under which the Gov.
eminent is to he authorised to work OIL,
the details. has been passed. The rail.
road men did not agree that these indi-
viduar settlements would work out for
the general good. and began yesterday y
the making Of general plan under
which the Government could deal with
the, question - . whole. taking all oi
the roads into consideration. rather thar
in their individual capacities.
The mARnAtes discussed what the
roads would get, how they would get It
and when they would Set Il. and agreed
to act jointly in placing their ideas be-
fore Mr.. McAdoo.
1t was pointed out that what might
be an ideal settlement for one particular
road might not nt the cases Of its neigh
bors. and that in the present railroad
emergency the roads must have some
joint and general understanding as tt
the means to be employed in keeping
their properties intact and in protect
ing the holders Of the various securities
There was general criticism OF tn
present status Of the Sims bill with ref
erence to the future OF the roads whel
tho war emergency has paused. Some o
the experts pointed out that the Sims b!l
made no provision for the handing bacl
Of tho roads to private ownership ant
wanted that feature made perfectly plaii
by amendment.
While the railroad heads conferre,
Alfred H. Smith. president Of the New
| York Central and Assistant Director
General Of Railroads. waited In his pri
| vate ONCE near by. being barred by hi
Governmental connection from taking al
active part in the deliberations of hi
fellows.
Tho absence Of Fairfax Harrison O
the Railroad War Board created som
comment among those who watched tn
proceedings. But II Mr.. Harrison wa
not among those present there wer
enough big bugs on hand to make tn
session extremely weighty.
Many Presidents Attend.
! Among those present were DAME
Willard. president OF the Baltimore an,
Ohio; J. II. Hustis Of the Boston an,
Maine. T.. G. Buckland. vice-presiden
OF the New Haven; William II. Trues
dale. president Of the Delaware, Lacka
] wanna and Western; +. d. Underwoo
OF the Erie. Samuel Rea. president O
the Pennsylvania; Judge r. s. Lovett
Director OF Priorities at Washington
Julius Kruttschnitt Of the Southern Pa
clio. e. f. Loomis. president Of tn
Lehish Valley; former Senator william
A. Clark. e. J. Pearson. president OF tn
New Haven. and Samuel NJ. FELTON,. Di
rector-General OF War Zone Activities.
In connection with the general fnan
cial arrangements to be made the rail
road folk talked Of the proposed bill
Continued on, Fourth P00e