Every evening, Wilmington daily commercial., 1918-07-09
j. 5. RAIL WAYS PACT
READY FOR S|CNERS
After Five Months Negotiations
Form Of Contract is
Agreed Upon.

New York, July n.-Tbe final form Of
the rnilroad contract which il to be
executed by the government and the
individual roads for the period Of the war,
n and Ia have been agreed upon by the
Railroad Administration and attorneys
for the ronda
Tho contract ~ vet to be approved by
the railroad executives, who will meet
Friday for this purpose, but enough II
them have been sounded 10 establish
definitely the fac, that il will be approved
almust unanimously.
The agreement ia said Ia be similar
tn those previously rejected, except that
IT will he amended in favor ri The railroads
m such n war IA 10 do away with ell
objection
The main provisions Of tho contract
follow:
fitst II gives the roads the full
compensation mentioned IN tho railroad
act
SECOND II restricts the. amount II
additions and betterInonts charneablo
against the road's corporate property.
Third II guarantees tho payment IL
regular dividends during The period If
Federal control
Fourth ]. assures the payment of Nil
fixed charges and the carrying out Of all
contracts entered into prior 10 Federal
control
Fifth It makes all road extensions
chargcable 20 tho United Statea
Sixth II makes all additions and bet
tsrruenfs for war purposes and not suitable
IN tho normal development of the prop
erty ohargeable IN tho United States.
Seventh IT provides for removable
...A.x A., Al
Fanitation for cash urod by the railroads
in additions, bettnruents and extensions
and fnr equipment
Eighth II keeps in force the account
ing practices and the payments tn sub
sidiaries IN force prior 10 Federal control
Ninth Government n respect owner
shlp If roads in mines, oil wells, etc
The new contract II the result If morn
than five months Of negotiation. during
which tho railroads hive received no
rental except in tho form If advances W
save them from bankruptcy The way
now IL clear IN preserve railroad credit
md 70 pay dividends at tho regular rates
nrlor tn tho governments assumption ~
control Payment n all interest obllga-
tlons rs assured regardless n future
developments
Sorne of tho noet important points in
tho new contract oentrc about The future
of compensation This - ~ he pad m
each company quarterly IN the last days
Of March, June September and Decsrnber
of each year for The quarter ended there
with. except that the first installrnsnt -
To be due upon execution IF the agree-
ment. including Herewith al PRIOR IN
stallmeutR then unpaid
While each company IL required n
reimburse the government for the cost If
additions and hcttrrrnenfs made to the
property and not properly chargcable 10
tho government, unless sIrh matters arc
financed or otherwise taken care ~ hy
the company. the railroad Fncn WIN their
contcnilon that thus power should be
restricted and the following provisions
are made.
The railroad men win their contention
that no deduction should be made for
additions and betterments which are for
var purposes and not for the normal
development Of the company or IN respect
of road extensions II there IL q differ
ence 10 the fact regarding such add
tions. betterrnents or extensions the
question IL to be determined by the
| Interstate Commerce Commission.