The sun., 1918-07-04
RAILROAD LEADERS
WILL CONFER HERE
Terms Of Proposed Govern
ment Contracts to Be
Threshed Out.
AIM TO CLARITY FORM
Rental, Compensation and
Maintenance Expenditures
Points for Settlement.

A meeting OF railroad presidents and
lawyers from all parts Of the United
States. II was learned yesterday. is
scheduled for July 12 at the Grand Cen
trail Terminal. to take up the proposed
railway contracts. one of the most i'm
portant railroad questions ever pre-
sented in the history OF this country.
At the meeting on June more than
las persons were present, and an even
larger attendance is expected a week
from tomorrow.
There IL little hope that those present
at the meeting will affix their signatures
to the terms proposed by the repre-
.sentatives of the Railroad Admlnistra-
ton, but the points OF difference are ex-
pected to be clarified and defined and
the whole subject prepared for presenta-
ton to Mr.. McAdoo when he returns to
Washington late this month.
AT the coming meeting the terms of
the contract as proposed by the rep
resentatives of tho Administration will
be presented in detail, the phraseology
OF the clauss on compensation" which
were omitted at the time of the June
meeting. having been completed. The
purpose OF the meeting. according to the
call recently sent out, Is to discuss the
subject OF the contracts to see whether
the terms can be accepted, and II unac-
ceptable to state with precision the OBJ
5ections to the Railroad Administrator
proposals.
Judge Payne and his associates have
gone as FAR rs their sense OF RESPONSE
bility permits them in the direction of
stating what they wish written into the
contract. So far the matter has not been
presented to Director-General McAdoo
While the railroad presidents are a unit
in stating that they will not resort to
litigation under any circumstances they
now propose to submit to Mr. McAdoo
certain fundamental objections on which
they wish his decision by which they
plan to abide.
The representatives OF the Railroad
Administration. 1t is understood. have not
yielded Jot of their position that the
Government control the disposition not
only Of the rental to be paid to the rail-
roads but Of the incorporating income
received by railroads as well as the
surplus cash In the railroad treasures
mat the standard of return be no
more" than the amount fixed by law:
that the railroads pay out of the stand
ard return maintenance expenditures
III excess OF the average paid in the
three years ended June 30, 1917, and
that the railroads obligate themselves
to pay for additions and betterments
ordered by the Director-General whether
they are requisite to normal operations
OF the railroads or not and without re-
gard to their future usefulness These
are the vital points at issue and in the
opinion of railroad men consulted yes
terday these matters will have TO be put
UP to Mr.. McAdoo for final decision.
Pending the settlement of the con-
tract problem. two railroads. the Balt!-
mora and Ohio and the Pennsylvania,
have been obliged 10 call summer ses-
sions of their boards In order to declare
dividends, the Railroad Administration
refraining until the last moment from
advancing funds on account of the
rental. Other roads have had TO defer
dividend action. In consequence many
railroad men feel that railroad credit
is imperilled by the delay in signing the
contract, inasmuch as more than FIVE
months has been spent in apparently
fruitless negotiation. At the coming
meeting they hope TO present the railroad
side OF the case in such a way as to
obtain speedy hearing and decision
from Mr.. McAdoo.