The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-20
DISCUSS FEDERAL
RENTAL CONTRACTS
Officials of Railroads Consider
Accounting Problems and
Their Settlement.
WAKEFIELD PLAN FAVORED
Bankers Approve Principles Of
Railway Security Owners
Association Scheme.

Grave questions OF accounting under
the Federal railroad rental contracts
we're discussed yesterday at an all day
session Of the standing committee OF the
Association Of Railway Executives but
no far as could be learned the meeting
resulted in no definite conclusion other
thanle determination to prepare in 20
far as possible for q settlement OF the
accounting problems that will be In
VOWED In the return of the railroads to
private operation.
The complexity and gravity OF the ac-
counting question. Il was said. were en-
HANGED by the fact that not single ac-
counting question with any railroad since
January 1, 1918. had been settled. that 30
far as accounting was concerned there
was a wide difference between the in
terpretation of the rental contract by
the railroad executives and that Of the
Railroad Administration and that settle
ment must be made for the materials
and supplies, cash, 60, taken over by
the administration at the close Of 1917.
Following the meeting Thomas De
witt Cuyler, chairman Of the Associa-
ton OF Railway Executives. said: The
standing committee OF the association
held a meeting this afternoon. A H. Har-
rls. vice president of the New York Cen
tral lines, retired from the committee.
and A. II Smith. president, was elected
In his place, The meeting was devoted
10 considering questions OF accounting
under the railroad contract
"a conference was held with q COM
mi,,ee representing the American Short
Line Railroad Association to consider the
mutual relations Of trunk and short
lines" 49,!
nj "a pnhtnann chairman
and Ben h. Cain, L. s. Cass. F. J. Lis
man. W. B. Dobson, w. B. Stewart and
c. w. Pidcock.
BANKERS Approve warfeld Plan.
SAGINAW, Mich, June 1s.-At the
convention of the Michigan Bankers As
ISOLATION held here. to-day 600 bankers
from all parts OF the State, following
an address by s. Davies Warfield. presi-
dent Of the National Association Of own
ers OF Railroad Securities. voted unanim-
cusly to indorse the so-called Warfield
plan. The resolutions were in part as
follows:
THE Michigan Bankers Association
declare against Government ownership
OF the railroads and against continued
control and operation longer than neces-
sary for Congress to enact appropriate
legislation for the return Of the railroads
In such manner that the business and
financial interests Of the country may
be adequately protected. having dua re-
gard for the interests Of the owners OF
these properties and those who have In
vested their money therein.
, "We believe any act passed by Con-
sress should recognise that competitive
railroad service Is essential to the up
building OF the country and that en-
forced consolidation Of railroad proper
ties with all legal and other complica-
tons Incident thereto would neither
meet the present situation nor serve tho
present emergency.
I'VE are In favor Of an act OF Con-
sress that shall give specific direction
10 the Interstate Commerce Commission
in respect to q percentage return on the
investment in the railroads OF not less
than per cent. on the aggregate in
veetment in each of the three dassifea-
ton territories.
I'VE favor legislation founded upon
the general principles of the plan pro-
posed by the National Association OF
Owners Of Railroad Securities. known
~ the Warneld plan.