Show U. U s.- s. RAILROADS S.-RAILROADS CONTRACTS ARE f READY TO SIGN I I Guaranteed Income for Carr Car Car- r- r 44 Should Satisfy All S r S Says Me l A do o t Washington ton Sept 5 T Terms Terms of or the standard contract between the govern govern- o ment and railroads made public toda today J Director General McAdoo doo after months of or ne negotiation with company 1 representatives c show how that most contentions con con- of or the Association of or Railway J Holders ht have e been lIea dented denied enl d. d These Included the claim that railroad companies should sho be lIf given gl the right to ato in court after the war Will for losses jose on account of or the Int Interstate com com- morce marce commission acting a as referee In disputes over O administrative questions Tho The contract now will bo be offered to all 11 roads under unde- federal control and it Is III belle believed belled d most leading roads will I n It In a statement explaining the contract contract contract con- con tract the director general expressed the ithe opinion that If Ir railroads had hall been under Minder private control during the first four months this his year eat they the would have 6 lost in In operating lIn Income s compared with the corresponding period of tho the preceding year ear earnd arid and 96 a as al compared with the average vern c for r those months of ot 1916 Inti and 1 11 1917 17 conditions together with the necessity lt railroads g would have hwe faced for 01 raising n wages cs and n tho the difficulty of borrowing money said Mr 11 McAdoo would probably have resulted In the I failure of or some of oC the lie most Important railroad l A A t o 4 li A companies I r. r t i r in the tho si rt 1 1 coUt country t to toA I I p. p 14 1 management rr Inventor torl Hotter Her I Tho fact that railroads now no arc nrc guaranteed guar suar- a 1 fixed net Income under fedral fed fed- raI ral mana management and are able to borro borrow bor- bor row rw front from the government for sary Improvements ement the director en- en oral or said are fundamental things which impress tlc the great rat bod body of or rail rail- investors and should make mke them then satisfied with tho the status as it now eXIsts ex- ex Is t 3 Mr Ir McAdoo doo characterized most objections ob ob- ob- ob of oC representatives es of ot the Association Asso Asso- elation of at Railway Security Holders to the contract as unreasonable and nd said ald he did not hot believe bellevo they the represented views vie of railroad companies or security owners generally Final action cllon on disputed points was wasas wasas wasas as follows r The refusal to approve c a provision for tor litigation over o damages on account of diversion of traffic was ws b by advice of the department of oC justice there thero is ia nothing to prevent pre a company compan from appealing ap- ap pealing to the court of oC claims claim claims which handles sU suits a against the tile government o over Ct disputed questions of or the amount or of compensation due Objections Objection Overruled Overrule The Tho objection of or the provision pro re requiring re- re quiring a n company compan to PU Ia pay out of its compensation expenses necessary to bring rundown property up to a condition condition condition condi condi- tion of safe sare operation was overruled The contention that a company's compensation compensation com corn should not be used to pa pay Its Ils debt to tho tile government Jo until after customary customary cus cus- tomary binary dividends ends have been paid also was overruled o The fhe director general n agreed to strike strikeout out as urged by the company compan tho thin section requiring a n. railway railway rail rall- way loay to turn over to the government one ono monthS month'S supply of ot working capital without interest Claim that the the- government o should hould pa pay corporate te expenses of oC railway companies companies com corn Panics was denied Security Owners O Protest Contract New ew York Tork Sept 5 AhI 11 All the special committees tees of the National Association of O Owners of Railroad Securities In a n joint meeting toda today decided that the federal contract with the railroads as announced in Washington ton still Is unsatIsfactory unsatisfactory un satisfactory and unacceptable and railed called a meeting of the associations association's financial committee of oC seventy ent c to bo lie held In Jn New Xe York next Wednesday to determine its future action |