The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1920-02-06
ANNUAL REPORT OF RAILROADS

SdJloH cOHtrdCLS between Cne GOVefn-
ment and railroad corporations cover
ing 232 railroads for the use of the
properties during Government con-
troll had been made as of January l,
1920, and the annual compensation to
railroad companies involved in COM
plete contracts was SIT 1853, 1870, or
II per cent of the total annual rental
of $917,U00,000 paid by the Govern
ment to the companies, These con-
tracts included two contracts with
lump-sum payments of S129, 73480,
the remainder providing for annual
rentals.
The status of the contract situation
growing out of Federal control of
railroads was contained in the annual
report for the year 1919 of E. Marvin
Underwood, general counsel of the
Division of Law of the Railroad Ad-
ministration, to Walker D. Hines, Di-
rector General of Railroads, made pub
lie today. Mr.. Underwood added that
negotiations with railroad corporations
as to many additional compensation
contracts are being actively pushed.
He also pointed out that in addition
to the so-called standard contracts
covered above there have been 1873 So
called cooperative contracts executed
between the Railroad Administration
and smaller railroads, mostly so-called
short-line railroads.
SIT is appropriate to state" said
Mr.. Underwood in connection with the
standard contracts, "that the actual
negotiations between the Railroad Adj
ministration and the companies has
progressed satisfactorily and as rap
idly as could be expected in view of
the difficult questions of fact to be
determined in each case and the high
degree of care and accuracy acquired.
Practically all the larger systems of
transportation and a great many of the
smaller ones have executed compen-
sation contracts"
Referring to claims Of companies
for special compensation in addition to
the standard return" provided for in
the Federal control act, Mr. Underwood
stated that such claims had been filed
by 124 railroads for compensation
amounting in all to $92,318, 1899,
and that of these claims 35, have been
allowed in part, totaling $7,493,618.-
SO, CT have been denied, totaling $45,-
86,276.74, and have been with
drawn, totaling $3.50, 754.15, leaving
still pending ID claims totaling &c.
324,288.15.
Mr.. Underwood also reported that
l3 railroads with claims in addition to
their standard return, aggregating
81 ,037, 359.97, have applied for the
appointment of boards of referees I'M
der the provisions of the Federal con-
troll act, that one of these petitions
has been dismissed, and in one an
agreement has been reached. No de-
cisions have been rendered in the re-
mainder, although hearings have been
held in six additional cases.
Mr.. Underwood described in detail
litigation affecting the railroads under
Government control during 1919, and
reviewing various rate questions in
which the Railroad Administration
has been concerned. He pointed out
that as far as possible the Division of
Law of the Central Administrator
has acted in an advisory capacity, and
has worked through the legal stats
of the various carriers under Federal
control
Very gratifying progress in avoiding
loss and damage claims on the rail-
roads aRd in promptly settling such
claims presented was outlined by Mr..
Underwood in his description Of the
work of the Claims and Property Pro-
lection Section of his division. He
pointed out that for all railroads un-
En1nrn1 hn hn, IF
settled claims on hand had decreased
from S06,7O7 on April 1, 1919, to 1885,
722 on November /, 1919, or a de-
crease of 340,9S5 in seven months.
During the same period there were 3
439,692 Of such claims presented, and
of these 2,T80,677 were disposed Of.
The number of unsettled loss and dam
age claims more than four months old
was reduced from 363,476 on April 1,
1919, to las, 1888 on November l, 1919,
or reduction of 214,793 in seven
During 1918 effort was of course
concentrated upon the service neces-
sary to the movement of troops, mu-
nitions and supplies" said Mr.. Under
wood, although every effort consist
ent with the existing emergency was
made to give satisfactory service to
the general public.
"At the beginning of 1919 energy
was directed to the restoration of SER
vice to pre-war basis, and on Jan. 6,
1919, a nationwide campaign to pre-
vent loss and damage to freight in
transit was started. In order to CO.
ordinate individual efforts of the va
rious railroad companies, study con-
ditions, bring about cooperation, and
make suggestions for improved SER
vice, regional prevention officers were
suggested and appointed by the reg
ional directors. The result so far OBJ
tanned in this campaign is very salts
flying"
In connection with fraudulent
claims, Mr.. Underwood reported that
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