The sun., 1919-03-11
RAIL MEN CONFER
WITH HINES TO-DAY
Expect Bankers to Aid Roads
That Want Concessions Be-
fore Making Commitment.

On the eve OF to-days conference be-
tween the Railroad Administration and
about twenty of the country's leading rail-
executives, with a few bankers In atten-
dance, it was learned yesterday that the
banking group here. which Is looked to
to extend aid in the railroad predtca-
ment. has insisted upon two essential
requisites before undertaking any com
mitment. The first OF the requisites has
been carried out and the second will |
come up for consideration to-day.
The expectations OF the Administra- |
ton regarding banking cooperation |
were presented to local bankers at
conference held in this city on last Fri
day. At that conference the requisites
we're decided upon, and a banker who Ia
a friend OF Walker D. Hines, the Dlrec-
tor General OF Railroads, who Is law
yer and was prominent member of last
weeks conference, was despatched to
Washington on Friday night. He has
been there ever since and probably Will
attend to-day's conference. It is under
stood that he has had a series OF pri-
vate talks with the Director General and
the War Finance Corporation.
At the private conference II is under
stood the following requisites were pre-
scented in as tactful a manner as posi-
BILE; one, the transfer OF power over
the dictatorship OF railroad finances to
the Director-Cie himself; the other,
concessions by the Administration in
signing rental contracts.
IT has been announced that John
! SHELTON Williams. on account OF the
pressure of other duties, has consented
TO relinquish the active work OF Director
OF Finance, Following the conference
| to-day IT is anticipated that special rail-
road rental contracts will be granted.
According to official statements. up
| to the present time only forty-five rental
contracts have been signed and 126 rem
| tai contracts are unsigned. There are
| III Class / roads and less than 80
| per cent. OF them have signed contracts.
| Despite many apparently legitimate
| claims for special treatment, which is
| allowed by the proposed blanket con-
| tract. the Administration in no case
| has allowed a claim for higher con-
tract than permitted by tho so-caled
| standard contract, which represents the
| Interstate Commerce Commissions GER
| tiflcatlon Of average net operating in
| como for three years ended June 30.
! 1917. In many cases there has been
| a positive refusal, which the Admins
| tration will be asked to reconsider. now
| that there has come a change in the
| financial department of Federal control.
| Here is a typical case in which rail-
road men and bankers agree there
should be special treatment in the rem
| tai contract The Rock Island during
| the test period lost se.S50,000 in gross
| revenue. owing TO certain rate laws
passed by Southwestern States.
| Subsequently the courts decided that
rates affected were connscatory and
| that tho law should not have been
| enacted. The action OF the courts came
too late TO affect Rock Islands revenue
| during the test period. which covered
three years ended June 80, 1917. This
| Ia only one phase OF many contracts
that seem to some authorities to require
| special allowance
Among the railroad men, who will
confer with Walker d. Hines to-day, are
the members OF the so-called steering
! committee OF the Association of Railway
| Executives, which consists in part of the
| following Samuel Rea. president Of the
Pennsylvania ; Howard Elliott chairman
Of tho Northern Paci1c: Robert : Low
EFT, president of the Union Pacific Dan
lei Willard, president Of the Baltimore
and Ohios julius Kruttschnitt. chair
man OF the Southern Pacific; s. r Bled-
soc. counsel OF the Atchison, and A. P
Thorn. counsel for the association. r De
Witt Cuyler. chairman OF the associa-
| tion. is in California