Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-17

three-cent exchange tickets shall be SUBJ
mitted TO the commission by initiative Of
the board and shall be subject to the order
OF the commission made In connection with
determination OF the fare requirements
under this contract. Until the abolition or
modification of the said exchange tickets
Wy the commission as herein provided or
'hcir abolition by the company, the come
panNS dividends to its stockholders paid
from the gross revenue, shall not exceed
hVe percentum t5Go) per annum The OPP
eratlhs surplus In excess of the said five
percentum t5T) dividend to the company
tnat may be accumulated from the date
upon which this contract shall become ef-
lectlNe until the abolition or modification
OF the said exchange tickets, shall be held
anu used to make up from time TO time any
uenclts in respect to the payments to be
,naue from the gross revenue specified in
Hrtlcle NNll, Any advances made out
OF the said operating surplus 10 make up
the said deficits shall he restored by pay-
ihents as specified, 10 the extent approved
oE the board out OF the subsequent gross
revenue Of the unified system
at the termination of this contract on
'uiy l. l'5' or thereafter any amount in
t"ls operating surplus fund shall he divided
equally between the city and the company
DEPRECIATION RESERVE FUNDS
From the date upon which this contract
shall become effective. three separate de-
probation reserve funds shall be set aside
py the company out Of the gross revenue
ana paid to the board quarterly in amounts
ana according to a classification To he de-
termined from time to time by the board
as follows:
FUND A--Dcprecation reserve fund for
| the ctty's transit facilities
Fuhd B-Dcrreciation reserve fund for
| 'he transit facilities to be furnished hy the
| company for the city.
fund C-Deprcciation reserve fund for
| the companys system
The board may classify transit facilities
| Tor the depreciation of which any fund is
! created ana apportion the amounts in the
! several funds according to such classified.
! ton That portion of Fund \ which shall
! ne set aside for permanent structures of
'ne cltys transit facilities as per the clas-
! sihcatton determined by the board shall he
! started ten years after the date upon which
/ ms contract shah become effective. and Mt
| no time shall the annual appropriation TO
| the said portion Of this fund exceed one
halt CD of one per ccntum of the cost
"i the said permanent structures
ANY salvage or proceeds from transit
facilities retired from service shall he paid
INTO The appropriate fund
CUSTODY AND CONTROL.
The funds thus set aside shall be in
charge Of and under the control and direc.
ton Of the board. and shall I've held for and
applied to repairs to and replaCemcnts and
renewals of portions Of the unified system
me cost OF repairs to which or replacement,
or renewals of which. shall not have beer
charged 10 maintenance and included in the
operating expenses Of the unified system
whenever transit facility or principa
part thereof shall be retired from seryic,
uh ahount equal TO its cost shall he with
draWh from the appropriate fund upon tn,
tePu'sl'ioh of the company. approved by tn,
board. and shall he expended IT, as anr
when needed on n new transit facility n,
lfincpal part thereof for the Replacement
: or renewal Of which such fund shall hav
e been set aside
Any amounts in such funds not currcntl,
needed for the purposes herein specific,
Shall he securely invested and reinvestc,
a by the board in the bonds. notes or othc
securities of the company provided they cal
be purchased AT cost not to exceed tn
par value thereof with accrued interest. q
! I in such securities as shall be legal invest
II monts for trustees under the laws Of Penn
! sylvania, and all interest and profits accru
ing thereon shall he invested FOR the hcnel
, of such fund The board shall have tn
( power to sell such investments to meet eur
;, rent needs or for the purposes Of rcnvcst
, y ment.
e CONTINGENCY RESERVE FUND
q Beginning at the expiration of ten ye,r
e become effective, there shall be dcductc
y quarterly from the gross revenue SUI
:, which shall he set aside rs n contineenC
I" reserve fund equal in total To one-half {
: | per cent Of the gross revenue for sue
IS quarter This fund shall be in charge {
J., and under the control and direction of III
" board. and shall Il" securely invested an
!, reinvested When the amount in this fun
- exceeds Sl,OOO,0O0 the payments To sue
, fund shall he suspended and interest therco
:, | shall be paid into gross revenue. II there
: | after the amount in this fund shall IA
below 81 600 600. payments at the rate afore
said shall he resumed until the amount /
\ the fund shall again exceed $i,00O.O 600. Sue
i | fund upon the reQuiSitinn of the company
2 approved by the board, shall be used to pa
extraordinary operating expenses ana '>
penscs due to other contingencies not proI
? crly chargcabe wholly against amy on
I fiscal year At the termination of this con
> tract on July l. 1857. or thereafter an
= amount in this fund. after making pIope
[ allowance for accrued accident and damage
account. shall he divided 50 per cent TO tn
city and 80 per cent to the company,
ACCOUNTS AND AUDIDTS
, on or before the thirtieth day of Janu
ary. April. July and October of each year
the company shall deliver TO the City Con
, troller statements certified by the boart
and in form and detail as prescribed by tho
board setting forth, for the three months
periods ending December 81 March ii
June 30 and September 30. the following
: Ia) The gross revenue and the deduc
tions from gross revenue for the said three
months period, as specified in Articles N%l
and xxi. There shall not be included II
such statement any amounts for expenses or
fixed charges incurred or accrued prior 10
the date upon which this contract shall be-
come effective
(b) The amount of new capital furnished
by the company as specified in Article XIII,
upon which the company is entitled TO re-