The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-10
4 Contract That Protects the Rail-
roads, the Government
and the Public.


The final draft of the contract that
10 to be executed between the Gov
eminent Of the United States and the
railroad corporations which 1t has
taken under it's control for the dura-
ton of the war was printed in THE
Sun Of yesterday morning. The fact
that we were able to lay this potent
document before the public in ad-
vance Of Its appearance in any other
newspaper, while highly gratifying TO
US, rs 1t undoubtedly is to our read
ers, Is of minor consequence when
compared with the supreme impor-
lance Of the document itself and what
its terms mean for the Government,
for the railroads, and, of greater mo-
ment than anything else, for the pep
PIE of this country.
They mean that the Government
will play fair with the railroads, and
while utilizing their plants In every de-
partment for the prosecution of the
war, will not seek to make its tenn
porary occupancy Of their property
an excuse for injuring their share
holders or impairing the private rights
that have been acquired In the long
and laborlous task Of upbullding the
land transportation system of the
United States. There is no threat
or suggestion Of confiscation the rant
ings Of demagogues and the visions
Of dreamers have no place in the
coldly sensible provisions set forth
In this comprehensive paper.
The first conspicuous feature Of the
contract is its recognition Of the in
violate rights Of the owners of the
railroads. coeXistent with the unques-
toned authority of the Government
to seize and administer their property
for the benefit Of the nation. The
owners are to be compensated, and
compensated fairly, for the period in
which the roads are out of their con-
troll; and when the time comes to re-
store the lines to private manage
ment, they are TO be returned in a
condition as good as that in which
they were when they were commn-
deered. The Government binds itself
to this. 1t will not seek to impose
on the owners a long and costly DO
litical or litigious struggle for REIN.
bursement after peace is proclaimed.
The possibility that such course
might be adopted existed. Had the
frantic enemies Of private property
whose bedlamitish theories of railroad
regulation reduced the railroads to
the lamentable condition in which
they were when the demands Of war
suddenly revealed their weakness to
the nation and the world been en-
trusted with the preparation of this
contract, we should have seen q pro-
duction that would have terrorize,l
every individual who owns a share
Of stock in a public utility. Reason
able and far-sighted men had charge
of the task. and they have carried II
forward in sobriety and good sense.
OF the betterments and extensions
needed by the railroads to fit then
more completely for the paramount
necessities of the Government, none
except those which are required Ii
the orderly conduct of their business
in peace times are to be charged
against them when the final account
ing Is made. The essential war ex
tensions, useful only for war purposes
are to be paid for by the Government
as other expenses incurred In the ma
tional defence are paid, an arrange
ment that is just to all concerned, ant
calculated to relieve railroad inves
tors of the fear that on the conclusion
of peace they would have dumped or
them expensive and non-productiv,
lines and facilities which would in
crease their capital charges to ar
amount that would force them int
bankruptcy.
Similarly, the Government is to &C
count for all money belonging to til,
railroads, and to pay for its use, jus
as 1t pays for the use of the money
of citizens who put their savings int
. War stamps and Liberty bonds. Ii
the same spirit of fairness and jus
tice, the Government is to respect tn,
contracts of the railroads with sub
sidiary corporations and their owner
ship Of various collateral and con
trlbutory enterprises.
1t will be seen that neither malic,
nor ignorance dictated the terms o
this agreement. 1t was conceived II
a broad spirit Of justice and. as /,
disclosure of the Governments attl
tude toward corporations engaged Il
public service, 1t betokens n new I'M
Outstanding of the relations tina