The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-08-09
ROADS BENEFIT BY
REVISED CONTRACT
Continued from First Page.


transportation Of which the President
has taken over possession, use, control
and operation shall be considered as In
Guiding the following roads and prop
critics (Here insert list OF roads, not
ing names, principal termini. &c), to-
gether with all branches. tracks, track
age. bridge and terminal rights and
lines OF railroad owned or leased by the
company as a part OF Its system OF
transportation, and all other property
with the appurtenances thereof, whether
included In the foregoing list or not the
revenues Of which were used, or which,
IL the property had been then revenue
bearing. would have been used, In COM
putting the company's standard return.
(Here insert such reservations and pro
visions respecting Industrial leases and
other matters as may be agreed onD
(BJ. All materials and supplies on
hand at midnight December 81. 1917
(this item to be supported by an inven-
tory, which, however. Is not to be incor-
porated IN the contract except by refer
ence).f
(C). All balances In the account OF
accounts representing the total Of met
balance receivable from agents and con-
, ductors' as OF midnight December 81.
1917.
| CD. dollars (s) in cash in
addition TO the foregoing Items. which
| last mentioned amount is taken over
as a cash working capital. the use Of
which the Director General Is to have
during Federal control without interest {:
| and
(E). (Here insert list OF such other
operating assets and Of any deposits
or funds as may be agreed on in each
case)
| Future Policy Not Prejudiced.
In section 3, covering acceptance of
the agreement. paragraph has been
changed to read:
| (c) The Federal control act being In
section 16 thereof expressly declared to
be emergency legislation enacted to
meet conditions growing out OF war,
nothing in this agreement shall be con-
strued as expressing or prejudicing the
future policy Of the Federal Govern
ment concerning the ownership, con-
troll or regulation Of the company or the
method or basis Of the capitalization
thereof and the recitals or provisions of
this ageement shall not be used as evil
dence or otherwise by either party
hereto in any pending or future pro-
ceeding which involves the acquisition
or valuation of the company's property
or any part thereof; but nothing in
this paragraph shall be taken or con-
strued as affecting the settlement and
discharge contained in paragraph OF
this section nor as limiting nor qualify
ing any OF the provisions Of said para
graph for the purposes thereof
In section 4 paragraphs a and have
been changed TO read:
Sec. 4. Cal All amounts received by
the Director General under paragraphs
c. d and e of section hereof and all
other amounts contained or realized upon
by him from current operating assets
belonging to the company or arising
from railway operation prior to mid
night Of December 81, 1917, shall be
credited by him to the company.
"unless objected to by the company
the Director General may in any case
and in cases where the current assets
including materials and supplies taker
over by him under the provisions Of
this agreement, are in his judgment
clearly in excess of the current liabili'
ties of the company paid or assumed BY
him shall pay and charge to the com
pany all expenses arising out OF rail-
way operation prior to January l. 1913
l
Balances to BE Taken Quarterly.
balances OF the above accounts ex
cept the cash taken over as working
capital shall be struck quarterly on tn
last days Of March. June. September
and December Of each year and the bal
ance found on such adjustment TO b
due either party shall be then payable
and II not paid shall bear interest n
the rate of per cent per annum un
less the parties shall agree upon
different rate but in cases where tn
current assets taken over clearly ex
coed the current liabilities OF the com
pany as hereinbefore provided the pay
ment OF the amount due by the com
pany may at Its option be postpone,
until the end OF Federal control, bear
ing interest in the meant!me.
"(b) Railroad operating expenses
{ reparation and other claimA hire o
, equipment and Joint facility rents shaI
be allocated with reference to the tim
when incurred az between the perio
prior and subsequent to midnight of De
cember 81. 1917. and as between tn
, period Of Federal control and the perio
+ subsequent thereto. Railway operatin
revenues shall be allocated as betwee
the period prior and subsequent to mid
night OF December 81, 1917, in accord
. ance with the established accrual prac
= tees Of the company and a like mctho
OF allocating railway operating reve
! nues shall be made at the end Of Fed
eral control"
!. Charging for Fuel and Supplies.
!, Paragraph H of Section 4 is change
s to read:
d "Of (h) the Director General at hi
g option shall be substituted for the perio
4 OF Federal control In the place OF tn
Q company In respect of the benefits an
h obligations Of contracts relating to opeI
q alton In force January !. 1913 unclud
ing contracts made by subsidiaries 10
the use and benefit OF the company an
. the right to abrogate or change an
make new contracts with express CON
!, panies for the period OF Federal control
4 except as TO contracts between the CON
pany and subsidiary companies whic
shall be considered and treated as al
rangements or practices and the d
rector-General shall in like manner a
his option be substituted for such perio
in respect of the benefits and obligatio
4 of arrangements and practices in fore
during the test period In regard to fue
materials and supplies for the operatio
i OF the property described In paragrap
i (a) of Section 2 hereof and OF any &C
n dtions and extensions thereto obtaine
= from any mine. oil field or other sourc
: OF supply. owned or controlled by II
a company, It being understood this
a under such arrangements or practice
II awaited OF by the Director-Gener
he shall to the extent necessary
Offset any increase in the standard r,
a turn growing out OF the furnishing b
the company or Of Its subsidiaries du