New-York tribune., 1918-06-06
Progress Reported
In the Adjustment
OF r. r. Rentals
Executives Consider Form
of Uniform Contract With
Railroad Administration


day in the Grand Central Terminal,
called by the Railway Executives Ad-
visory Committee to consider the terms
of the uniform contract to be imposed
Federal control, T. De Witt Cuyler,
who was recently elected president Of
tho committee. announced that fav-
orable progress had been made in the
negotiations with the railroad ad-
ministration.
"This committee representing the
railroads." said Mr. Cuyler, "has been
working with the government for sew
cral months now to secure a standard
form Of contract for the compensa-
tion and use Of the railroads during
the period Of Federal control To-
days meeting was for the purpose of
companies of the status Of these ne
gotiations. Inasmuch as the problems
involved are matter of almost daily
consideration between the government
and the carriers and as this consider
alton is proceeding in a. spirit of CO.
operation, we are under an honorable
obligation not to give them publicity
until decision hes been reached. 1t
is only fair to say, however, that sat
isfactory progress is being made"
The Course of Negotiations
Yesterday mornings session was
given over to discussion of the re-
port Of the law subcommittee on the
negotiations carried on with the rail-
road administration at Washington to
date. In the afternoon the railroad
company officials and attorneys set
forth their views on what the uniform
contract should provide. A railroad
man who attended both sessions
stated that only three important
points remained to be settled. One
was the question whether the standard
return should be the full amount Of
the average net operating income for
the three years ended June 3d. last, or
whether it should be mot more than"
this average, as the railroad admin
istration has recommended.
Another debated point was whether
the Director General should have au-
thority to make deduction from the
standard returns, the so-called excess
maintenance. or the higher cost of
maintenance work performed at the
present time compared with the cost
of similar work done during the three
year test period.
The railroads have taken the position
that there should be no deduction from
the standard returns on this account,
but that the government should as
sumo the burden of full maintenance
work at its present cost and also pay
not less than the average net earn
ings of the three years for the use
of the railroad properties.
Payment for improvements
A third point concerned the power of
the Director General to order i'm
provements at the expense of the rail-
road company, which might not be
adaptable to commercial uses at the
end of the period Of Federal control.
1t was stated that the Director Gener-
al's control over the income Of the rail-
roads in excess of that which they use
to pay in interest and dividends has
been adjusted.
Among those who attended yestar-
days meeting were Frank Trumbull,
until recently head Of the advisory
committee and chairman of the Chesa-
peake ONO; +. r. Loomis, president
of the Lehigh Valley; A. P. Thorn,
counsel for the committee; Francis
Lynde Stetson; A. H. Harris, of the
New York Central; Samuel Rea, presi-
dent of the Pennsylvania Railroad
Company; Daniel Willard, president
of the baltimore & Ohio Railroad Com
pany; Howard Elliott, chairman of the
executive committee of the Northern
Pacific Railway Company; Marvin
Hughitt, chairman of the board of the
Chicago e. Northwestern Railway
Company; A. J. Earling, chairman Of
the board Of the Chicago, Milwaukee
q St. Paul Railway Company; Henry
Walters, chairman of the board Of tho
Atlantic Coast Line Railroad Company;
E. B. Thomas, chairman of the Board
of the Lehigh Valley Railroad Com
pany; Newman Erb, president of the
Ann Arbor Railroad Company; A. W.
Krech, president of the Equitable
Trust Company; Former United States
Senator w. A. Clark; Harry Bronner.
chairman of the executive committee Of
the Missouri Pacific Railroad Com
pany; Julius Kruttschnitt, chairman
of the beard of the South Pacific Com