The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-07-09

property described In paragraph (a) Of
section hereof or any replacement
thereof or addition or extension thereto
Is destroyed or damaged by FIRE. and Is
not restored or replaced by the Director
General. he shall reimburse the COM
pany the value Of the property destroyed
or the amount of the damage at the
time OF the fire and the cost Of restora-
ton or replacement or said value or
damage. as the case may be, shall be
charged TO annual railway operating
expenses.
The Director General shall not be
liable TO the company for any loss or
damage due to the acts. of public
enemies.
I (f) II any additions, betterments, or
extensions are made to the property
taken over or any equipment Is added at
the expense of the company and with
the approval or by the order of the d.
rector-General during Federal control,
he shall expend and charge to annual
railway operating expenses such sums
either In payments for labor and ma
terials or by payments into funds, as
may be requisite for the proper main
tenance. repair. renewal, retirement and
depreciation OF such property until the
end of Federal control.
(g) The company shall have the right
to inspect Its property at all reasonable
times during Federal control and the
Director-General shall provide reason
able facilities for such inspection.
(h) II any question shall arise either
during or at tho end of Federal control
as to whether the covenants or pro-
visions In this section contained are be-
ing or have been observed the matter
In dispute shall. on the application OF
either party. be referred to the COM
mission which. after hearing, shall make
such findings and order as Justice and
right may require. which shall be final
as TO the questions submitted and shall
be binding on and observed by both
parties hereto. except that either party
may take any question Of law to the
courts II II go desires.
Section 6-Payment of Taxes.
Sec 8. (a) All taxes assessed under
Federal or any other Governmental au-
thority for the period prior to January
i. 1918. including proportionate part
or any such tax assessed after Deem
Der 81, 1917. for a period which includes
any part OF 1917 or preceding years, and
unpaid on that data, all taxes commonly
called war taxes which have been or
may be assessed against the company
under the act of Congress entitled. IAN
act to provide revenue to defray war
expenses and for other purposes" ap-
proved October 8. 1917, or under any
act In addition thereto or in amend
ment thereof. and all taxes which have
been or may be assessed on property
under construction. and all assessments
which have been or may be made for
public improvements chargeable under
the accounting rule of the commission
IN force December 81, 1917, to invest
Nd
| paid by the company; but upon the
amount thus chargeable TO investment.
interest shall be paid to the company
during Federal control at the rate pro-
vided In paragraph d OF section z hereof.
Taxes assessed during construction on
additions. betternents, extensions made
| by the company with the approval or by
the order OF the D!rector-General during
Federal control shall be considered a
part OF the cost OF such additions, better
ments and extensions and shall, under
the provisions OF paragraph d of sec
ton hereof. bear interest as a part of
such cost from the date OF the compile
ton OF such additions, betterments or
| extensions. Assessments for public i'm
provements which do not become a part
| or the property taken over shall bear
interest from the date OF the payment of
| such assessment
Payment of Overdue Levies,
| tb) II any tax or assessment which
under this agreement is to be paid by
the company Is not paid by II when due,
| the same may BIO paid by the Director
General and deducted from the next in
stain ant OF compensation due under
! secti hereof, II any taxes propel y
charseaole to the Director General have
been or shall be paid by the company, Il
| snail be duly reimbursed therefor
| tc) The Director General shall either
pay out OF revenues derived from rail-
way operation during the period OF Fed
eral control, or shall save the company
harmless from all taxes, and the ex-
pense OF suits In respect thereof, law
fully assessed under Federal or any
other governmental authority for any
part OF said period on tho property
under such control, or on the right to
| operate as carrier. or on the revenues
| derived from operation. and all other
taxes which under the accounting rules
OF the Commission In force December 81,
1917, are properly chargeable to rail
way tax aocruals" except the taxes and
assessments for which provision is made
| In paragraph (a) OF this section
(d) II any such tax is for period
| which began before January /, 1918. or
continues beyond the period OF Federal
control such portion OF such tax as NAV
| be apportiorable TO the period Of Fed
eral control shall be paid by the Dr.
rector-General, and the remainder shall
be paid by the company.
| (e) Whenever period for which n
tax Is assessed cannot be definitely de-
termined, so much OF such tax as ia nav
able In any calendar year shall be
treated as assessed for such year.
| Section 7-Term, Of Commentaries
Sec. 7. (a) The annual CONDENSATION
| guaranteed to the company under section
| OF the Federal control act shall be the
| sum OF - dollars during each wear
and pro rata for each fractional part OF
| a year Of Federal control, subject. how
ever. to any increase or decrease in the
standard return hereafter made by the
Commission as provided In paragraph
| CD OF the preamble of this agreement
CD The said compensation shall be
paid TO the company quarterly, on the
last days OF March. June, September and
December OF each year for the quarter
ending herewith except that the first
instalment shall be due upon the execu-
ton OF this agreement. and shall include
all prior instruments then unpaid, but
from each instalment there may be de-
Quoted any amount due by the company
Under paragraphs (a) and (d) of sec
ton hereof under paragraph (b) OF
| section hereof, and under paragraph
(b) OF section 6 hereof, and all amounts
| required to reimburse the United States
for the cost OF additions and betterments
made 20 the property OF the company not
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