New-York tribune., 1918-09-07
Rail Executives a
Unit in Approving
Federal Contract
Representatives of82Roads
Also Agree ON Grievance
Adjustment Plan

Unanimous approval of the standard
contract under which the railroads will
be operated by the government during
the period of Federal control was
given yesterday by the Railway Ex
ecutivcs' Advisory Committee, repre-
senting the presidents of eighty
roads and 80 per cent of the country's
railroad mileage. The committee,
which met in the board room Of the
New York, New Haven & Hartford at
the Grand Central Terminal, also
agreed upon plan by which it is
hoped that grievances of individual
lines will be handled by it in whatever
negotiations with the government may
follow.
The committees Endorsement of the
standard contract, made public yester-
day by Director General McAdoo, was
contained in letter sent to all the
transportation companies represented.
In this document T. De Witt Cuyler,
chairman, summarized the conviction
of the committee that the terms under
which the government proposes to op-
crate the carriers are the best possible
that could be obtained at time when
further delay might result in litigation
with its attendant uncertainties. Ex-
pressing the opinion of the committee
in part:
ut does not give US in the way of
contract protection all that we deem
ourselves entitled to have, but the mat
ters not conceded to us lie within the
region of a fair difference Of opinion
and are negligible in comparison with
the larger interests which have, to
substantial extent, been safeguarded.
Wish to Avoid Litigation
1--WE have the choice between the ac-
ccptance of this contract and the guar
antee it gives Of immediate compensa-
tlon on the one hand, and its rejection
and resort to litigation on the other
This committee cannot regard litiga-
ton, with its attendant uncertainties
and delays, as "A practical remedy in
the circumstances, and cannot consent
to become responsible for the disorder
in our national finances and the weak
enng Of the nations financial power
which would inevitably follow. If there
Is to be litigation the responsibility for
1T must rest elsewhere"
Summarizing the expected benefits
which the roads will derive from the
government contract, Mr. Cuyler point
ed out that no matter how great their
Indebtedness to the government for
deferred maintenance the government
the corporate organizations are sup
ported and sinking fund taxes, rentals
and interest are provided. for. He
added:
at gives us the governments obliga-
tion to maintain our properties during
Federal control up to the same standard
we ourselves adopted when we were
charged with the duty, and to return
to them at the end of Federal control
in like good order and condition.
at provides remedies by means of
which we may recover for any loss sus-
tanned through an i'll advised govern
mental requirement as to additions and
bettefment expenditures; it gives us
guarantees against forfeitures and loss
arising out of contracts or duties vio-
lated because of Federal control or
other government action or omission;
it creates working system of account
ing and payments, of supervision and
inspection, and methods and details for
the restoration of our property and the
payment to us of debts at the end of
Federal control"
Yesterdays meeting was not only at
tended by the members of the Railway
Executives Advisory Committee. but
there were also present railroad law
yers of national prominence.