| Show I U. U S. S CO WITH CARRIERS PUT lULl IN SHAPE SMIE Y Yea Yearl e a r I y Rental Agreement Receives Receives Re Re- Approval Washington lon Sept 3 The 3 The form o or of contract un under er which the government o will ill P py nearly a billion dollars ollars rental renta every e year ear to railroads un under er federal federa cont control ol has hns been approved e finally bj by Director General McAdoo oo and representatives of the leading and will be offered to the tho companies for Cor signature within a few da days das s. s I Protests of or company compan representatives es have lm been heeded In the thc final draft chaft It was said Uld toda today some roads I m ma may yet et decline to sign It and resort to further negotiations or at possibly to court action Without a formal conI contract contract con con- I tract during during- the eight months of oC federa federal fed fed- era eral control the government go has paid 90 per cent of or compensation claims to need needy roa roads s left lell the tho balance for Tor a ad adjudication ad- ad after ler conclusion of or tho the agreement I Cach of ot the roads un under er federal management will be bo asked to sign tho ho contract which will be lie identical for or orall all except that tho the specific annual compensation cornI comaI corn coma I tOt tom each cacti will b be the he average net railway operating Income for the three years Ye ending Juno 30 0 O 1917 Commerce omm rc Hoard to o n As provision pro against disputes over O questions of oC fact the contract specifies tho Interstate commerce commission shall act as referee Questions of or law between an any company compan and th the director general ma may be ie submitted to a court court- All operating revenues of ot the lime rail raH roans roads arc 10 to go 10 to inc tue government so 10 IO o ole be le us used In paying the compensation so tar far this tills year has demonstrated demonstrated demon demon- emon- emon that these revenues rc will vili tall fall far short of or the billion dollar ollar compensation sallon which It Is estimated te the government gob gov will have ht to pa pay Property taken talen over o by the government govern govern- ment must be bc returned In good condition condi conall- I lion tion at the time end of or federal control and provision pro made for Cor depreciation but the lime government Is permitted to make maken n additional expenditures to Insure safe saCe operation If It an any railroad property Is destroyed ed by fire or other means the government govern so ment must replace It it but th tho government government govern govern- ment Is itu not hl lucid held responsible for or destruction de do b by public enemies This Is 19 taken to mean that If war waz were carried to this side of ot the Atlantic and railroads railroads rail rail- roads destroyed It would woul be bc 0 the companies companies' com corn loss Tho ho railroad administration must notify notify no no- u tl company compan of or additions t and betterments bet bet- of oC roa load oad extensions to tn be I made but It If these finally are arc hel held to tobe tobe be bc required by war var nee needs s and not for tor i I pro proper pet operation of oC time the line lInc tho timo comI company com corn I pan pany will not bo ho called calle upon to lo stan stand I Ithe the expense I During federal control time the government government govern o ment Is to assume all expenses growing growing grow grow- In ing out of or settlement of oC claims arising since the thc ron roods roads s were ere taken talen over o Joint facilities and amid c equipment rents an and of ot damage amase sull suits Salaries of or corporation officers or other corporation or railroad expenses not direct directly necessary to actual operation oper oper- must be paid pall b by the time companies unless pro l provided e otherwise by time the di director director director di- di rector gen general ral I Or Ordinary federal state and local taxes will be bo paid paM b by the tho government go but each company compau must Ila pay ay special war taxes The contracts specifically provide I Is to that since Ince government o operation tide tho the nation over O a war var emergency nothing In the contract terms Is to o lJ bo be construed as expressing or Ot prejudicing In lag ing tho the further policy of or tho the government govern govern- lc 1 ment meat concerning ownership control or |
